The impact of new media on traditional media is like cars replacing horses, not cyclical.
Looking back, there was an abyss behind $Warner Bros Discovery (WBD.US)$ It's hard to believe that Malone's company could have such poor corporate governance, with revenues missing by $300 million, a non-cash goodwill impairment of $9.1 billion (really "excellent" capital allocation), and a free cash flow decline of 43% to about $1 billion.
The revenues from theaters, networks, and DTC are all declining. Zaslav, the CEO of the media industry whom I think is the most overpaid, can still say in the conference call, "I think we are in a good situation," which is such a brazen statement! This stock has probably trapped many reputable "value investors" who believe in Zaslav/Malone.
$Disney (DIS.US)$ is no better. Many people still hold on to it thinking it's an advertising cycle, but as we discussed before, it's actually one industry's dimensional reduction strike against another.
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