Thursday, June 2, 2022

Mike Burry | WBD

 

Warner Brothers Discovery (WBD)

Media giant Warner Brothers Discovery is now the third-largest holding in Burry’s portfolio. He added 750,000 shares in the first quarter.

The merger of Discovery and Warner Media has created a global content juggernaut. This conglomerate holds rights to iconic characters including Batman, sports channels in Europe, HBO, and CNN.

The stock is down about 27% because of concerns about debt and the competitive landscape for online streaming. However, the company expects to generate $3.65 in free cash flow per share by next year, which would imply a 20% FCF yield at the current market value.

This could be why Burry made such a big bet on it.

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