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Macroaxis, a ‘personalized wealth optimization service’, claims Warner Bros. Discovery may soon go bankrupt. The site mentions that the company’s ‘Stock Probability of Bankruptcy’ is nearly 60 percent. It further claims that Disney, by contrast, has a 1 percent chance of going bankrupt even though its recent releases have underperformed at the box office.
The report reads:
“Most of Warner Bros' fundamental indicators, such as Probability Of Bankruptcy, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Warner Bros Discovery is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.”
Warner Bros. Discovery has yet to react to this report.
Warner Bros. Discovery financial crisis: Causes and Impact
This comes nearly three months after the company revealed that it lost between $300 million and $500 million in 2023 because of the SAG-AFTRA strikes. Moreover, traditional media companies have been facing heat over the last few years because of the rise of streaming services and a distinct change in consumer preferences.
The entertainment conglomerate was formed after WarnerMedia’s spin-off by AT&T and its merger with Discovery Inc. in 2022. It includes Warner Bros. Pictures, Discovery, MaxDC Films, WaterTower Music, DC Comics, Adult Swim, TBS, TNT, CNN, Cartoon Network, and WB Games.
Its potential financial instability may have a far-reaching impact on the entertainment industry as a whole. The situation may cast a shadow on the DC Universe, which features popular superhero characters. According to Cosmic World News, CEO David Zaslav asked James Gunn to recast the DCU with less expensive talents, making it impossible for him to set up the Batman multiverse.
The website also reported that Zaslav wants to sell the company to Universal in a few years. This means that DC films may eventually find a new home. It is also being said that Universal plans to continue Gunn’s DCU whenever it takes over Warner Bros. Discovery.
What’s next for the company?
The company, meanwhile, is awaiting the release of Aquaman and the Lost Kingdom. The Jason Momoa-led superhero film is slated to hit screens on December 22, 2023. Its cast includes Patrick Wilson, Amber Heard, and Yahya Abdul-Mateen II.
It will also be hoping to score big hits with Dune Part Two and Bong Joon-ho'’s Mickey 17, which are slated to release in theaters in March 2024.
Additionally, it is currently working on big-ticket films such as Todd Phillip’s Joker: Folie a Deux, the Robert Pattinson-led Batman Part 2, and James Gunn’s Superman Legacy. Films such as Captain Planet, Billy Summers, and Constantine 2 are also reportedly in the works.
