The consolidation in the media industry continued this week after Warner Bros. Discovery (WBD) continued the bidding process. WBD stock closed at $24.57 on Wednesday after Netflix (NFLX) and Paramount (PSKY) appeared to come out as favorites in acquiring WBD.
On Monday, Netflix reportedly offered mostly cash for buying WBD. Days later, however, Paramount, whose market capitalization of $16.19 billion, is still a favored winning bidder. WBD has a market capitalization of $60.88 billion. PSKY stock fell by 7.27%, likely pricing in the risk of consolidation ahead.
In the REIT sector, Alexandria Real Estate Equities (ARE) dropped by 10.05%. The firm cut its dividend by nearly half. This move suggests that other REITs are at risk of the same fate. Be wary of Crown Castle (CCI), Medical Properties Trust (MPW), SL Green Realty (SLG), and Clipper Realty (CLPR). Still, Medical Properties recently raised its dividend. It chose to reward its income investors instead of paying down more debt.
ARE stock is especially unattractive. The Board did not offer any negative warnings on its outlook. The chances are increasing that the firm will cut its dividend again in the future.
In the tech sector, Sandisk (SNDK) dropped by 5.34% on Wednesday. Competitor Micron Technology (MU) said that it would close down its consumer products division, Crucial. SNDK stock should rise, not fall, after the news. It has one less competitor in the market.
