Much has been said about the immense content vault Warner Bros. Discovery now houses and the advantage it gives the newly merged company in the streaming wars — specifically in the competition with Netflix and Disney. But David Zaslav’s company still faces major challenges, several experts told TheWrap, including $55 billion in debt and a host of legacy cable channels.
Industry watchers have been salivating for months over the potential of marrying WarnerMedia’s HBO and HBO Max with Discovery’s streamer Discovery+ into a powerhouse entity that can compete with front runners Netflix and Disney+ in the streaming wars. The $46 billion merger puts the company in striking distance of its rivals — with a combined 96 million worldwide subscribers for HBO, HBO Max and Discovery’s direct-to-consumer video services, including Discovery+.