Link: https://finance.yahoo.com/media-advertising/articles/why-wall-street-worried-skydance-130002599.html

Why Wall Street Is So Worried About Skydance’s Debt

So it was a massive leveraged buy out (LBO) funded by "a group of lenders that included sovereign wealth funds from the Middle East."

traditional channels like CNN, TBS, Nickelodeon, and CBS are shrinking, yet these segments deliver more than 70% of the company's profits and "almost all the free cash flow."

That doesn't look great for the combined companies' growth prospects.

(Skydance) reported more than 200 million combined subscribers, but that figure does not necessarily account for overlap (between Warner Bros Discovery and Paramount+). Analysts estimate about 120 million paying subscribers after removing duplicates, according to Forbes.

That seems like a self-inflicted wound, if the company is supposed to grow its streaming subscriber base to please shareholders and lenders.

MoffettNathanson analyst Robert Fishman believes that Skydance will have to grow HBO Max and Paramount+ while maintaining the health of its cash-generating channels.

Forbes also noted that U.S. streaming growth remains largely flat. The bigger opportunity is in international markets, and that will require heavy spending on local programming.

Good luck with that, with the US President actively trying to make the country unpopular worldwide, which will harm our greatest cultural export: Hollywood.

yeah. Australian here. Trump and americans behaviour has already resulted in us canceling american streaming. I suspect its the same around the world. Can’t imagine Canadians wanting to stay with americans streaming now.

I agree, and to me it kind of seems like they’re literally just bringing future loss-leaders together under one roof again, like with AOL-Time-Warner in the late 90s. Or massive music and radio companies in the 2000s.

Warner Bros. Pictures, for example, has periodically struggled financially since the 90s. They tend to capitalize on the short-term popularity of things, whether it be Warner Bros. cartoons in the 1990s or their more recent fandom-related content.

Something that doesn’t get mentioned as often as it should is that some of the most famous characters they own are moving into the public domain within the next decade it so. Which is why they’re churning out so many Superman, Batman, Joker, and Wonder Woman movies as they can. The characters go into the public domain in 2034, 2035, 2036, and 2037, respectively.

Bugs Bunny also enters into the public domain in 2035.

Warner Bros. has been this depressing sell-out brand for three different generations now. It’s impressive, really!

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