Why Warner Bros. Discovery Stock Tumbled Today
Shares of Warner Bros. Discovery (NASDAQ: WBD) took a dive today in response to the dispute between Disney (NYSE: DIS) and Charter Communications (NASDAQ: CHTR), the owner of the Spectrum cable network. Disney blocked ESPN and other Disney-owned channels from being shown on Spectrum, signaling a souring environment in the video entertainment industry.
As a result, Warner Bros. Discovery, which makes most of its profit from cable channels like CNN, TBS, TNT, and HBO, finished the day down 12%, while Disney lost 2.4% and Charter gave up 3.6%.
Paramount Global (NASDAQ: PARA), a close peer of Warner Bros. Discovery, was down 9.5% on the news.
Source Fool.com
