I started analysing AT&T and then stumbled upon the reason Burry is investing in Discovery.
Here’s an excerpt:
Warner Media should be worth at least ~$100Bn. AT&T will only own 71% of spin-off
$100Bn(0.71) + 130Bn = $200Bn. AT&T current market cap = $180Bn…Not a HUGE discrepancy, but it’s undervalued using extremely conservative estimates.
I would like to see AT&T trade a little cheaper to increase my margin of safety before I add a concentrated position.
Through my analysis, I was led to Discovery. Discovery will own 29% of the NewCo after the merger. If Warner Media is worth $100Bn, then 29% is worth $29Bn. Discovery is currently trading at $12.44Bn. Now there looks to be a margin of safety worth investing in, especially because I want the upside that HBO Max will offer.
I have already started looking into Discovery and will post on it when I understand it properly.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.
- Why Are So Many Extremely Bizarre “Mystery Creatures” Starting To Appear All Over The Planet?
- Heartaches On Heartaches! US Court Ruling May Take 70,000 Truckers Off Road, Spur Jams (Diesel Prices UP 118% Under Biden, Things Just Keep Getting Worse)
- School board meeting: Superintendent slips up and says what he shouldn’t.
- BANK SCAM in CHINA – $6 Billion In Deposits Vanished From Banks in China. 400k People Are Left with Nothing
- We Are Witnessing A Stunning Breakdown Of Law And Order, And The Overwhelmed Police Seem Powerless To Stop It
- Future is bleak. Lmfao
- Biden’s “Liberal World Order” summarized
- Liberal colonizer gets owned. Two dumb imbeciles arguing.
- Dr. Jordan Peterson tears woke Twitter admins a new one…
- The Government’s OWN Data Tells Us an Economic Collapse is Underway!