I posted about a bunch of stocks I was short/long a while ago and everybody and their dog hates on PSKY. Almost nobody says anything good about it, but I think its the most overlooked stock right now. I suspect a lot of people hate it because they got in earlier and it crushed them, (your fault). However they are coming up on closing the WBD deal, which I am very sure they will get approval from regulators. (April 23rd)
Once approval happens I expect the stock to jump. I have done the math and calculations on this stock over and over, like the guy losing his mind from its always sunny in philly.
Lets compare this stock to NFLX. You could argue its more comparable to DIS (its not), or AMZN (its not), both DIS and AMZN have core businesses that have nothing to do with streaming and are the main drivers of revenue. NFLX is pure play streaming. PSKY is streaming/cable network television. Cable network is higher profit margin, but a shrinking customer base, as everything is moving to streaming, but they also utilize movie production that hits theaters. They do not own movie theaters (anymore, wisely)
I know everybody is going to roll eyes at this but I am going to lay out comparison for PSKY AFTER the merger. (estimates obviously)
NFLX
Market cap: 420B
Profit Margin: 24%
Revenue: 45B
EBITDA: 30.2B
Net Earnings:11B
Subscribers: 325M
US/CAN ARPU: $17.26
Int. ARPU: $11.11
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PSKY
Market Cap: 10B (current)
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* **Market Cap**: **\~$81B - $111B** (Estimated based on the buyout valuation) (NFLX tried to buy it at 82B valuation, PSKY is paying @ 111B valuation)
* **Profit Margin**: **\~14.5%** (Combined pro forma estimate; individual margins are roughly 24% for WBD and 13% for PSKY) Company target is 24% by 2030
* **Revenue**: **$69B** (Consolidated pro forma target for FY 2026)
* **EBITDA**: **$18B** (Adjusted EBITDA target, including roughly $6B in synergies)
* **Net Earnings**: **\~$10B** (Estimated based on projected cash flow and interest on 79B in debt but the ellisons own it... im not worried)
* **Subscribers**: **200M- 220M** (Combined total: 140M from WBD and 79M from Paramount+)
* **US/CAN ARPU**: **\~$10.50 - $11.50** (Weighted average of WBD's \~$10.45 and Paramount+'s slightly higher domestic figures)
* **Int. ARPU**: **\~$4.50 - $5.50** (Blended average; WBD international ARPU is \~$4.00)
Worried about regulatory approval? dont be.... Stock will jump on the news of approval.
Once the subscriber count grows to 250m+, they will simply announce price hikes, and you will pay it. Stock jumps... Once they get the ARPU similar to NFLX, I dont see why this company could end up being worth more than NFLX once debt is payed down to reasonable levels... NFL negotiations will continue to happen and more and more content will be pulled off cable network television and added to the streaming platforms.
I am running out of steam looking up all this info for you regards, already posted about this stock so this is the last time ill mention it, the info above looks to be pretty accurate - copied and pasted from AI, but I have looked all this info up multiple times in the past few months, it is accurate.
Only thing is timing. World War 3 is right around the corner soo.. thats bad mmmmkay.
Anyway do your own due diligence and good luck degenerates. Im in at 11.77 and have LEAP calls.