DISCK - Discovery, Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
28.03
+0.10 (+0.36%)
At close: 4:00PM EST
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Previous Close27.93
Open27.87
Bid27.57 x 4000
Ask0.00 x 1100
Day's Range27.73 - 28.36
52 Week Range21.99 - 30.29
Volume2,770,058
Avg. Volume2,487,966
Market Cap15.124B
Beta (3Y Monthly)1.56
PE Ratio (TTM)12.60
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target EstN/A
  • Bloomberg

    Everyone Gets Paid in CBS-Viacom Except Shareholders

    (Bloomberg Opinion) -- Is it just me, or does the $100 million “severance” being paid to Joe Ianniello, the acting chief executive officer of CBS Corp., stink to high heaven? For starters, you can make a pretty compelling Elizabeth Warren-esque argument that handing a $100 million “severance” to someone who is not, in fact, leaving the company is exactly why income inequality has become such a hot-button issue.But let’s be old school about this. Let’s focus on the shareholders and how this is their money that’s being handed to Ianniello. It is also an unpleasant reminder of how the father-daughter combo of Sumner and Shari Redstone seemingly can’t resist throwing hundreds of millions of dollars at executives who have not done much for their stockholders.The Redstones, of course, control CBS through their privately held film exhibition company, National Amusements Inc. They also control Viacom Inc., which Sumner Redstone bought for $3.4 billion in 1987. (Viacom acquired CBS in 1999.) Until 2016, Sumner Redstone, now 96, was the executive chairman of both companies, though he had largely disappeared from public view two years earlier amid allegations that he was in serious decline. Shari Redstone, 65, is the vice chairman of both companies.In 2003, when CBS was still part of Viacom — and Sumner Redstone was still in charge — Les Moonves became its CEO, a position he retained when CBS was spun off in late 2005. Between 2007 and 2018, when Moonves was fired for sexual improprieties, the CBS board, led by the Redstones, paid him just shy of $700 million, according to figures compiled by Bloomberg. That’s an average of $63.6 million a year.I happen to think that $63 million a year is an absurd amount to pay a manager to run a company. But even if you accept that entertainment companies pay their executives insane amounts — Discovery Inc. paid its CEO, David Zaslav $129.4 million last year, for crying out loud — it is reasonable to assume that such an outsized paycheck would be justified by outsized performance.Not so. During the Moonves era at CBS, the S&P 500 Index returned an average of 9% a year. CBS returned 8.7% a year. In other words, the Redstones and the CBS board paid hundreds of millions of dollars of its shareholders’ money to a man who could barely keep pace with an index fund. (By comparison, the Walt Disney Co. returned 14.6%, and 21st Century Fox returned 10.5%.)The situation at Viacom is even worse. Remember Philippe Dauman, the former CEO whom Sumner Redstone once called “the wisest man I know”? He ran Viacom for a decade, from 2006 to 2016. According to Equilar, a company that compiles executive compensation figures, his compensation during those 10 years was nearly $500 million — while the stock gained a paltry 2.7% a year on average. You may recall that Dauman wound up in a nasty court fight with the Redstones in 2016, trying to keep his job by contending that Sumner Redstone was no longer mentally competent to make key business decisions. After winning that battle, the Redstones still handed Dauman a parting gift as they pushed him out the door: a $75 million severance package.Which brings us back to Ianniello. Although he has been acting CEO only since Moonves departed late last year, Ianniello has also been the recipient of the Redstones’ largesse: Between 2016 and 2018, as the company’s chief operating officer, his compensation averaged $27 million a year, according to Bloomberg. The stock? It dropped from the low 70s to the mid-40s during those three years. This is what’s known as “pay for pulse.”So why did Shari Redstone feel the need to hand Ianniello an additional $100 million? The reasons are twofold. First, Redstone is recombining Viacom and CBS. She doesn’t want Ianniello to leave — at least not right away — but she also isn’t going to make him the top dog. Second, for legal reasons, she can’t ramrod this deal through by herself, even though she is the controlling shareholder. She needs the CBS board and senior management to support the bid. “You need Joe to get the merger done,” Robin Ferracone, the CEO of executive compensation consulting firm Farient Advisors, told Bloomberg. “So you need to make him indifferent to whether he’s going to lose his job or not.”Yes, $100 million is certainly likely to buy a whole lot of indifference. Then again, $10 million probably could have achieved the same result. And in any case, if Shari Redstone needs $100 million to, er, persuade one of her executives to support her merger plan, maybe that suggests the merger’s success is not exactly a slam dunk.I have a hard time seeing how combining two underperforming media companies with a hodgepodge of assets will create a worthy competitor to powerhouses such as Disney, which rolled out its Disney+ streaming service on Tuesday morning, and AT&T, which next year will bundle its media assets into another streaming entrant, HBO Max. But Shari Redstone wants to combine Viacom and CBS, and with the help of that $100 million, that’s what’s going to happen. When the companies are merged, which is expected to take place next month, the CEO of the combined entity will be Bob Bakish, who is Viacom’s CEO.Since he took over Viacom, Bakish’s compensation has been surprisingly normal, at least by modern CEO standards. According to company filings, he received about $20 million a year in total pay in 2017 and 2018.But fear not. Once the deal is done, Bakish’s pay is set to jump to more than $30 million. I predict that he’ll be in Moonves/Dauman territory in no time. After all, overpaying executives is the Redstone way.To contact the author of this story: Joe Nocera at jnocera3@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Joe Nocera is a Bloomberg Opinion columnist covering business. He has written business columns for Esquire, GQ and the New York Times, and is the former editorial director of Fortune. His latest project is the Bloomberg-Wondery podcast "The Shrink Next Door."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • How Liquidity Shortage is Fueling Explosive Stock Swings
    Investopedia

    How Liquidity Shortage is Fueling Explosive Stock Swings

    Goldman Sachs says falling liquidity has boosted volatility during Q3 earnings season. Stocks with low liquidity move 12% more than normal.

  • Bloomberg

    Discovery Looks to Create Its Own Hulu by Taking Channels Online

    (Bloomberg) -- Discovery Inc. wants to create its own version of Hulu.The cable-programming giant said Thursday that it’s considering combining its suite of TV channels into a streaming service that would be available directly to consumers in the U.S.Discovery sees “an opportunity to take content on a broader basis to mount an attack on those who are not existing cable subscribers,” Chief Executive Officer David Zaslav said on an earnings call. The company is looking at “aggregating all of our content in the U.S. and having something that looks very different.”The comments came with Discovery’s stock soaring after it reported third-quarter earnings that topped analysts’ estimates. The shares jumped as much as 12%, the most since February 2009, to $30.90 in New York trading.The new streaming platform would be a significant strategic shift for Discovery, which has been more cautious than other media giants in making its channels available to people who don’t get cable-TV subscriptions.While AT&T Inc.’s HBO and CBS Corp. made their channels available to cord cutters a few years ago, Discovery until recently had limited its non-cable offerings mostly to Europe and to niche audiences. But like other media companies, Discovery is losing subscribers to cord cutting, forcing the company to consider bypassing the cable bundle.Unscripted ProgrammingDiscovery, which bought Scripps Networks Interactive Inc. last year, owns several channels that feature unscripted programming, including HGTV, Animal Planet, TLC and the Discovery channel. By combining those channels into one streaming service, Discovery would be taking a page from Walt Disney Co.’s Hulu, which has long offered shows from broadcast channels to people who don’t pay for cable-TV service.While Disney and AT&T are planning streaming services in the U.S. with numerous expensive, scripted shows, Zaslav said Discovery’s streaming strategy is less risky because its unscripted programming costs far less to make.Zaslav said he didn’t think making its channels available to cord cutters would violate Discovery’s contracts with pay-TV distributors like Comcast Corp. or AT&T’s DirecTV.Sports RightsDiscovery has been assembling the rights to sports and nonfiction programming to launch new online video channels. It offers a streaming service for golf fans and an online video channel in Europe that Zaslav calls “the Netflix for sports.”Discovery is also planning new streaming-video services with the BBC’s natural-history programming and the stars of HGTV’s “Fixer Upper,” Chip and Joanna Gaines. And it recently introduced a new online channel called Food Network Kitchen that lets subscribers watch live cooking classes with famous chefs and have recipe ingredients delivered to their homes.Discovery has said it expects to spend $300 million to $400 million on its digital efforts in 2019.To contact the reporter on this story: Gerry Smith in New York at gsmith233@bloomberg.netTo contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Benzinga

    Discovery Q3 Earnings Outlook

    Discovery (NASDAQ: DISCA ) releases its next round of earnings this Thursday, November 7. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report. Earnings and Revenue ...

  • 6 Stocks That Can Win the Pay TV Streaming Wars
    Investopedia

    6 Stocks That Can Win the Pay TV Streaming Wars

    Video streaming services are proliferating rapidly, with a growing number of deep pocketed players getting into the game. A shakeout is inevitable.

  • Here is What Hedge Funds Think About Discovery, Inc. (DISCA)
    Insider Monkey

    Here is What Hedge Funds Think About Discovery, Inc. (DISCA)

    Is Discovery, Inc. (NASDAQ:DISCA) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. […]

  • 7 Underpriced Stocks With Biggest Upside as Market Stages 4Q Rally
    Investopedia

    7 Underpriced Stocks With Biggest Upside as Market Stages 4Q Rally

    Goldman Sachs names 7 stocks with wide gaps between their current and target prices that could soar.

  • Reuters

    Discovery to launch live and on-demand cooking classes via new streaming app

    While Netflix Inc, Walt Disney Co and other media companies battle for control of the living room, Discovery Inc is doubling down on the kitchen. Discovery on Wednesday said it was launching a new service in October, Food Network Kitchen, that will offer live and on-demand cooking classes on a Food Network streaming app in the United States. The service, which will feature Food Network chefs such as Bobby Flay and Rachael Ray, will have a free, ad-supported version and an ad-free subscription service costing $7 per month or $60 per year.

  • Bloomberg

    Mock Tornado Alert on CBS’s ‘Young Sheldon’ Draws Proposed Fine

    (Bloomberg) -- The hit CBS Corp. comedy “Young Sheldon” about a child genius, wasn’t so smart when it came to a mock tornado warning, according to the Federal Communications Commission.Even modified, the tornado warning sounded too much like the Emergency Alert System, which is a violation of agency rules, the agency said. It’s proposing a $272,000 fine for the network’s April 12, 2018, episode, according to a notice on the FCC website. CBS will get a chance to respond before any fine is imposed.The FCC is cracking down on what it says are potentially dangerous uses of the emergency alerts in television shows. The alerts are used to warn the public about emergency events like dangerous weather. Using them in television shows could confuse listeners and is a “serious public safety concern,” the agency said.Last month, the FCC lobbed a $395,000 penalty against ABC over the use of an alert during a comedy sketch on “Jimmy Kimmel Live!,” $68,000 against Discovery Communications Inc. for an Animal Planet episode and $104,000 against AMC Networks Inc. for two episodes of “The Walking Dead.”The “Young Sheldon” episode aired on 227 television stations, including 15 owned and operated by CBS, according to the FCC. The show is a crossover of “The Big Bang Theory,” telling about the childhood of “Big Bang” character Sheldon Cooper.To contact the reporter on this story: Susan Decker in Washington at sdecker1@bloomberg.netTo contact the editors responsible for this story: Jon Morgan at jmorgan97@bloomberg.net, Wendy BenjaminsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Tech companies are trying to disrupt banks, and banks are ready
    Yahoo Finance

    Tech companies are trying to disrupt banks, and banks are ready

    Big banks are well defended against disruption by tech companies and startups, which are al going after a lucrative market.

  • 2 Insanely Cheap Media Stocks to Buy Right Now
    Motley Fool

    2 Insanely Cheap Media Stocks to Buy Right Now

    Despite top-notch leadership and solid results, these “old media” companies trade at single-digit P/E ratios.

  • 2 Top Entertainment Stocks to Buy Now
    Motley Fool

    2 Top Entertainment Stocks to Buy Now

    Investors can pad their returns with these powerhouse companies.

  • ViacomCBS is just the beginning of Shari Redstone's media deals
    Reuters

    ViacomCBS is just the beginning of Shari Redstone's media deals

    More than two months before CBS Corp and Viacom Inc succeeded at a third attempt to recombine, controlling shareholder Shari Redstone had already decided the new company needed to get bigger. "We would want to look at something after that to ... develop more scale as we move forward,” Redstone said at The Information's Women in Tech, Media and Finance conference in June. To the audience of executives in the Times Square high rise overlooking the storied Paramount building, it was clear that her ambitions went well beyond the hard-won reunion of the two companies her father, Sumner Redstone, put together and then pulled apart 13 years ago during a very different era in media.

  • Discovery Communications Inc (DISCA) Q2 2019 Earnings Call Transcript
    Motley Fool

    Discovery Communications Inc (DISCA) Q2 2019 Earnings Call Transcript

    DISCA earnings call for the period ending June 30, 2019.

  • Discovery Earnings Rise as Pay-TV Subscriber Losses Stabilize
    Motley Fool

    Discovery Earnings Rise as Pay-TV Subscriber Losses Stabilize

    The content giant had some good news for investors in its second-quarter report.

  • Benzinga

    Discovery Reports Q2 Earnings Miss

    Discovery Communications (NASDAQ: DISCA ) reported second-quarter earnings of 98 cents per share versus the analyst consensus estimate of $1.05. This is a 27.27% increase over earnings of 77 cents per ...

  • Cable, Satellite Subscriber Losses Are Picking Up in the U.S.: Chart
    Bloomberg

    Cable, Satellite Subscriber Losses Are Picking Up in the U.S.: Chart

    (Bloomberg) -- Cable- and satellite-TV customers continue their headlong flight toward streaming services. Bloomberg Intelligence found growing subscriber losses for the major U.S. providers in each of the past four quarters. That sets an ominous stage for this week’s earnings reports from companies including Walt Disney Co., Viacom Inc. and Discovery Inc., which are moving into online services themselves but still rely on those providers to get their channels to viewers.To contact the reporter on this story: John J. Edwards III in Geneva at jedwardsiii1@bloomberg.netTo contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Cécile Daurat, Rob GolumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • fuboTV inks Discovery deal, adds 13 more networks to its live TV streaming service
    TechCrunch

    fuboTV inks Discovery deal, adds 13 more networks to its live TV streaming service

    Live sports streaming service fuboTV is expanding further into non-sports content with today's news that it's inked a new multi-year deal with Discovery, Inc. that will bring 13 Discovery television networks to its service over the weeks ahead. The new additions will include Discovery Channel, TLC, Investigation Discovery, Animal Planet, OWN: Oprah Winfrey Network and MotorTrend -- all of which will be available on fuboTV's $54.99 per month base package. Here, they'll join the other Discovery-owned networks that are already live, including HGTV, Food Network and Travel Channel.