Discovery Is a Cash Flow Machine. Here's Why.

Shares of many legacy media stocks have suffered over the past few years, because of the rise of streaming and the acceleration of cord-cutting. That includes the likes of Discovery (NASDAQ: DISCA) (NASDAQ: DISCB) (NASDAQ: DISCK), which is the market leader in unscripted content. But is all the pessimism warranted?

Discovery made a major acquisition with Scripps Networks Interactive in early 2018 for $14.6 billion. That consolidated most of media's leading unscripted brands under Discovery, from the Discovery Channel to The Learning Channel to OWN, along with Scripps' HGTV and The Food Network, among many others.

Beyond this, Discovery has also become a big player in European sports through its Eurosport channel, which it acquired in 2015 and will broadcast the Olympics this summer. In addition, Discovery has been building out GOLFTV, a direct-to-consumer over-the-top offering for golf fanatics, featuring PGA Tour content outside the U.S., along with lessons from Tiger Woods, and content from Golf Digest magazine.

Source Fool.com