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Warner Bros. Discovery stock dips following "Max" investor event

Tim Baysinger
Apr 13, 2023
Data: FactSet; Chart: Axios Visuals

Wall Street had a tepid response to Warner Bros. Discovery's newly unveiled Max streaming service, which combines its two existing streamers HBO Max and Discovery+.

Why it matters: David Zaslav is trying to turn the page after a rough first year for Warner Bros. Discovery that was mostly filled with layoffs, cancellations and a weakened stock price.

  • His message to investors during an hourlong presentation in Los Angeles: "We are this industry's biggest and most successful, maker of content. ... We are not pickers. We are content-makers."

The big picture: Combining the streaming services will help Zaslav streamline the company's priorities ahead of a potential deal to combine or sell to an even bigger service.

  • In February, the company said that the premium subscription cable channel HBO, HBO Max and Discovery+ have a combined 96.1 million subscribers worldwide.
  • Warner Bros. Discovery will keep the standalone Discovery+ available for those who don't want to pay the higher price for Max.

WBD shares fell 3% in the hours after the presentation and ended the day 6% lower, closing at $14.07.

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