Morningstar Rating

Stock Research and Analysis

by Peter Wahlstrom, CFA

Bulls Say

Discovery owns the rights to over 100,000 hours of programming and footage in its video library, so it can tap this content for additional revenue streams.
The 50/50 joint venture with OWN could give a boost to cash flow if the network is able to generate compelling programming in addition to Oprah's successful brand.
Discovery is well positioned to benefit from the growth of pay TV around the world, especially as television advertising on cable channels expands over the next decade. Read more 

Bears Say

An economic slowdown or recession could hit Discovery harder than some of its peers since advertising represents about 50% of Discovery's revenue.
International expansion can be challenging as Discovery grows into economies with infrastructures that are in various stages of development.
Optimism may be too high following the recent run of strong TV ad growth across the board; a pullback in ad spending could punish the shares more than some of its peers. Read more 

Management

We think Discovery's stewardship of shareholder capital is Standard. David Zaslav became president and CEO in 2007. He was hired away from his post as president of NBC Universal Cable by his longtime mentor, Discovery founder (and former chairman) John   Read more 

Profile

Discovery Communications' flagship network includes subjects like science, exploration, natural history, technology, history, health, and wellness. Discovery's other main   Read more 

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