Warner Bros. Discovery Credit Rating Cut to Junk Bond Status on Linear TV's Decline
Warner Bros. Discovery has been downgraded to BB+, or junk bond status, for 2025 and 2026 by S&P Global over linear TV weakness as the Hollywood studio continues to pivot to the streaming space.
The ratings firm continued its outlook for WBD as stable, but pointed to weak credit metrics overall to explain its bond rating markdown to speculative grade. 'We lowered our 2025 and 2026 forecast due to continued challenges in WBD's linear television networks segment, which we forecast will offset growth at its studio and streaming segments,' S&P Global said in a statement.
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WBD, like its industry rivals, has been under pressure from Wall Street amid industrywide challenges, including advertising softness and cord-cutting, as investors look for a return on an expensive transition from legacy linear TV networks to the digital streaming world.
The possibility of WBD doing a major split of the company — with WB studios being potentially paired with a rebranded HBO Max and the Discovery linear cable channels being spun off into a separate company – hasn't exactly cheered the ratings firm.
S&P Global has not factored into its ratings downgrade any potential split of the company because one hasn't been formally announced. But the ratings firm added 'a separation would likely pressure ratings because it would weaken our view on the individual businesses, particularly the Global Linear Networks company, due to ongoing secular pressure in the linear television ecosystem.'
WBD has already begun to reorganize the company with an eye to a possible spinoff of its legacy TV assets. In Dec. 2024, the studio said it had reworked its corporate structure into a global linear TV division, separate from its streaming and studios division.
WBD added it had begun the early steps leading toward the new corporate reorganization, with a completion set for mid-2025. A possible split of the company at WBD would follow rival Comcast unveiling a plan to spin off its less lucrative cable networks away from its film and TV studio entertainment and parks businesses.
While the cable business used to be a cash driver for studios, the TV channels lately have become a drag on earnings, and investors have dinged companies that have been weighed down by channels tied to bundles that have fast fallen out of out of favor with consumers who've spent instead on individual streaming services.
As a result, S&P Global analysts said they expect WBD to only 'modestly reduce leverage,' or its borrowings, this year and next by generating cash flow.
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Business Upturn
2 hours ago
- Business Upturn
Bitcoin Solaris Presale Surges Past $3.8M as Final $6 Phase Nears Close
By GlobeNewswire Published on June 8, 2025, 16:11 IST TALLINN, Estonia, June 08, 2025 (GLOBE NEWSWIRE) — The crypto community is buzzing as Bitcoin Solaris (BTC-S) crosses a major milestone, raising $3.8 million in its ongoing presale. With over 11,000 participants already onboard and the token price still at just $6, this marks one of the most rapid early-stage raises of 2025. Built with a clear focus on speed, decentralization, and developer-ready infrastructure, Bitcoin Solaris is more than just another token—it's a full-stack blockchain ecosystem gearing up for mainnet launch. The current phase of the presale is expected to end within days, ahead of the next price jump to $7. Why Bitcoin Solaris Is Outpacing the Crypto Pack Bitcoin Solaris was built to take the best of each and leave the problems behind. Here's how it does that: Combines Proof-of-Work and Delegated Proof-of-Stake for a dual-consensus model. Runs up to 100,000 TPS on the Solaris Layer, with 2-second finality. Secures its Base Layer with SHA-256, keeping it compatible with existing mining rigs. Includes 21 rotating validators, ensuring decentralization with performance. Why Everyone Is Talking About It From top Telegram groups to influencer channels, the buzz around Bitcoin Solaris is only growing. The detailed breakdown by Ben Crypto highlights why this project stands out in a sea of overpromises. With real use cases, deep audits, and a scalable structure, the hype isn't artificial—it's earned. What makes this even more incredible? The presale isn't even over yet. Current phase: 6 (last day) Current price: $6 Next phase: $7 Launch price: $20 Potential return: 1,900% Already raised: $3.8 million This is being hailed as one of the shortest and most explosive presales in recent memory, and the countdown has officially begun. Core Features That Power the Frenzy At the heart of Bitcoin Solaris is one idea: speed without compromise. Let's break down why it's different: Hybrid PoW/DPoS Consensus: Maintains decentralization while enabling speed. Validator Rotation: Every 24 hours, keeping the system agile and secure. Energy Efficiency: Uses 99.95% less power than Bitcoin. Cross-Chain Bridges: Built-in support for interoperability with Solana and others. Rust-Based Smart Contracts: Initially leveraging Solana tools for dApps and DeFi expansion. Audited Infrastructure: Smart contracts have been fully reviewed by Cyberscope and Freshcoins for trust and security. This Is How Bitcoin Solaris Will Make People Rich Wealth isn't made by buying late. It's built by spotting what's early—but solid. Bitcoin Solaris isn't a copycat. It's a new layer of infrastructure designed to generate value for real participants. The reward distribution model ensures that every piece of the network feeds back into the community: 40% of rewards go to miners 25% go to validators 20% go to stakers 10% funds for long-term development 5% support community initiatives Unlike many coins where wealth consolidates at the top, BTC-S is structured to empower long-term holders, contributors, and those who participate early. Real Vision, Real Roadmap Bitcoin Solaris isn't pitching hope—it's executing a plan. Here's the official roadmap: Bitcoin Solaris Roadmap Summary Phase 1 (Q2–Q4 2025): Token generation, whitepaper, core devs, and presale launch Phase 2 (Q1 2026): Testnet, wallet, bridge integration, architecture optimization Phase 3 (Q2 2026): Final mainnet prep, dev tools, exchange listings Phase 4 (Q3 2026): Mainnet launch, AI-powered app release, governance rollout Phase 5 (Q4 2026): DApp accelerator, Mining Power Marketplace, hardware wallet integration Phase 6 (Q1–Q2 2027): Layer-2 upgrades, DEX, and quantum security Phase 7 (Q3–Q4 2027): Fortune 500 partnerships, institutional tools, Innovation Labs Phase 8 (2028+): AI integration, government collaborations, long-term evolution That's not just a vision board—it's an execution framework already in motion. The Final Surge Is On Bitcoin Solaris isn't just another token looking for attention. It's a serious infrastructure play backed by smart tech, audited code, and a growing army of supporters. With $3.8 million raised and momentum accelerating, this is one of the few presales that feels like more than a hype train. And with the price still sitting at just $6 for a very short time—this might be the final opportunity to ride the wave before it takes off. For more information on Bitcoin Solaris: Website: Telegram: X: Media ContactXander Levine [email protected] Press Kit: Available upon request Disclaimer: This is a paid post and is provided by Bitcoin Solaris . The statements, views, and opinions expressed in this content are solely those of the content provider and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. We do not guarantee any claims, statements, or promises made in this article. 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Miami Herald
2 hours ago
- Miami Herald
Cathie Wood sells $22.8 million of hot stock near all-time highs
Cathie Wood has long been aggressive in hunting tech stocks that she believes will have a "disruptive" impact on the future world. However, she sometimes sells a stock when it is high to secure gains. In the past week, the head of Ark Investment Management sold a popular AI stock that has surged nearly 70% year-to-date. Don't miss the move: Subscribe to TheStreet's free daily newsletter Cathie Wood's investments have had a volatile ride this year, swinging from strong gains to sharp losses, and now back to outperforming the broader market. In January and February, the Ark funds rallied as investors bet on the Trump administration's potential deregulation that could benefit Wood's tech bets. But the funds stumbled in the following weeks, underperforming sharply as several of its top holdings -especially Tesla, its largest position - declined amid macroeconomic and trade policy uncertainties. Now, the fund is regaining momentum. As of June 6, the flagship Ark Innovation ETF (ARKK) is up 6.11% year-to-date, outpacing the S&P 500's 2.02% gain. Wood gained a remarkable 153% in 2020, which helped build her reputation and attract loyal investors. Still, her long-term performance has made many others skeptical of her aggressive style. As of June 6, Ark Innovation ETF, with $5 billion under management, has delivered a five-year annualized return of negative 0.5%. In comparison, the S&P 500 has an annualized return of 15.18% over the same period. Image source:Wood's investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology and robotics. Wood says these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds' values. Related: Cathie Wood's net worth: The Ark Invest CEO's wealth & income The Ark Innovation ETF wiped out $7 billion in investor wealth over the 10 years ending in 2024, according to an analysis by Morningstar's analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott's ranking. Wood said the U.S. is coming out of a three-year "rolling recession" and heading into a productivity-led recovery that could trigger a broader bull market. In a letter to investors published on April 30, she dismissed predictions of a recession dragging into 2026, as she expects "more clarity on tariffs, taxes, regulations, and interest rates over the next three to six months." "If the current tariff turmoil results in freer trade, as tariffs and non-tariff barriers come down in tandem with declines in other taxes, regulations, and interest rates, then real GDP growth and productivity should surprise on the high side of expectations at some point during the second half of this year," she wrote. She also struck an optimistic tone for tech stocks. "During the current turbulent transition in the US, we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing," she said. But not everyone shares Wood's bullish outlook. Her flagship Ark Innovation ETF has seen $2.23 billion in net outflows over the past year through June 5, including nearly $154 million in the last month alone, according to ETF research firm VettaFi. From June 2 to June 5, Wood's Ark funds sold 179,846 shares of Palantir Technologies (PLTR) , which was valued at roughly $22.8 million. Palantir is known for providing AI-driven data analytics software to the U.S. government, military, and commercial clients worldwide, including JPMorgan Chase, Airbus, and Merck. The company reported stronger-than-expected first-quarter revenue in early May and raised its full-year outlook as demand for AI tools increased. "We are delivering the operating system for the modern enterprise in the era of AI," CEO Alex Karp said. While many tech stocks have struggled this year, Palantir has stood out. Its shares are up roughly 69% in 2025 and just hit a record close of $133.17 on June 3. Related: As Palantir stock soars, veteran trader makes surprising call Much of the recent momentum comes from its government work. Back in May 2024, Palantir won a $480 million, five-year U.S. Army contract to build its Maven Smart System, which is a battlefield AI prototype. Last month, the Defense Department modified the contract, increasing the licensing ceiling from $480 million to $1.275 billion. Palantir's Foundry platform has been adopted by at least four federal agencies, including the Department of Homeland Security and the Department of Health and Human Services, according to a New York Times report published May 30. Fannie Mae also announced a partnership with Palantir in May to work on AI-based fraud detection. However, the New York Times article also raised concerns about the company's relationship with the Trump administration, alleging that the U.S. president could use Palantir's technology to target immigrants and political opponents. The article also claimed that some Palantir employees felt uncomfortable with the company's decision to work with the Trump administration and that it "risks becoming the face of Mr. Trump's political agenda." Palantir responded in a June 3 post on X, denying the accusations. More Palantir Palantir gets great news from the PentagonWall Street veteran doubles down on PalantirPalantir bull sends message after CEO joins Trump for Saudi visit "The recently published article by The New York Times is blatantly untrue," the company wrote. "Palantir never collects data to unlawfully surveil Americans." Palantir remains a core position for Wood even after recent trims. The stock is now the 9th largest holding in the ARK Innovation ETF, accounting for 4.54%. Wood's latest trades in the past week include buying shares of Advanced Micro Devices (AMD) , (AMZN) , Guardant Health (GH) and Veracyte (VCYT) . At the same time, she trimmed positions in Tesla (TSLA) , Roblox (RBLX) , Robinhood (HOOD) , and Meta Platforms (META) . Related: Top analyst sends bold message on S&P 500 The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Forbes
2 hours ago
- Forbes
How To Lock In Yields Up To 17.1% In Historically Cheap Small Caps
Small-cap stocks haven't been this cheap in decades. This valuation advantage gets interesting when we add big fat dividends and today, we'll discuss five cheap small caps yielding between 8.3% and 17.1%. (That's no typo by the way—we only talk serious dividends here at Contrarian Outlook!) The Apples, Google and Microsofts of the world are priced like luxury goods. Smaller stocks, meanwhile, have been left at the discount rack. Let's shop: The valuation spread between the S&P 500 and S&P 600 hasn't been this wide since Bill Clinton was wondering whether dot-com was one word or two. Is a bust to follow again or are these big yields from small stocks really spectacular deals? Let's explore. Israel-based Platytika Holding (PLTK) is a gamemaker that primarily makes casino-themed titles for countries on just about every continent. Here in the U.S., Playtika's best-known titles include Bingo Blitz, Redecor and Domino Dreams. Playtika has done quite a bit of building by acquisition, purchasing Seriously, Youda Games, Innplay Labs and, most recently, SuperPlay, among others. (It tried to buy Angry Birds maker Rovio in 2023, but the deal eventually fell apart.) Playtika hasn't been a dividend stock for very long—it initiated its dividend program in late February 2024. About a year ago, when I examined PLTK among other 'inaugural dividends,' I mentioned its 10-cent-quarterly dividend translated into a nice 5% yield, but also more than 60% of the company's estimated earnings for 2024. By the time all was said and done, it ended up being closer to 70% of adjusted profits for last year. Fast-forward to today: PLTK hasn't raised its payout, but it now yields north of 8%. This is the 'wrong way' to raise a dividend. PLTK Total Returns Ycharts As I said in my previous writeup, the mobile game market is brutal, especially among the 'free to play' titles that Playtika specializes in. PLTK had been suffering from years of profit declines and flat sales, and sure enough, 2024 saw another drop in earnings and a modest decline in sales. And yet … the few pros who cover the stock are quite bullish about what comes next. While revenue growth estimates for the next two years aren't much to scream over, they're looking for a 32% jump in profits this year, and a respectable 23% improvement in 2026. Meanwhile, PLTK's woeful performance has driven the dividend higher and its valuation down to a dirt-cheap 6 times forward earnings. Still, Playtika is asking for a lot of faith in its growth prospects while (so far) providing very little evidence. Carlyle Secured Lending (CGBD) is a business development company (BDC) that's externally managed by a subsidiary of multinational asset manager Carlyle Group (CG). CGBD invests primarily in U.S. middle market companies with between $25 million and $100 million in annual EBITDA. And it predominantly deals in first-lien debt (83%), though it has single-digit exposure to second-lien debt, equity investments and even investment funds. Its 138 portfolio companies cover a couple dozen industries, including healthcare/pharmaceuticals, software, consumer services, and business services. Carlyle Secured Lending came public in 2017. And as we neared the end of 2024, I noted that shares had and spent most of their time putting up downright excellent returns. Things have changed—drastically!—since then. CGBD Total Returns Ycharts What went wrong? Two earnings reports have revealed some growing cracks in Carlyle's armor. In February, profits came in below estimates, thanks largely to a markdown on hotel management company Aimbridge Hospitality. It also doubled the number of companies on non-accrual (loans that are delinquent for a prolonged period, usually 90 days), from two to four. In May, the company reported disappointing earnings again, and an additional company went on non-accrual, bringing non-accruals up to 1.6% of the total portfolio at fair value. More importantly, the company announced it would only pay a base dividend of 40 cents per share. That's problematic for two reasons: Based on net investment income (NII) estimates for the rest of the year, dividend coverage could be tight; it's possible the company might need to rely on 'spillover' income to cover the payout for at least a quarter or two. CGBD is just a couple months removed from a potentially beneficial merger with another BDC, Carlyle Secured Lending III; even without any more specials, its base dividend translates into an 11%-plus yield; and shares now trade at a nice 16% discount to net asset value (NAV). But I'd like to see signs that CGBD is correcting its recent operational slide. Bain Capital Specialty Finance (BCSF) is a diversified BDC that provides a variety of financing solutions to 175 portfolio companies primarily in North America, but also Europe and Australia (a rarity for many BDCs). The lion's share of Bain Capital's investments are first-lien in nature—in addition to 64% exposure directly through portfolio companies, it also has almost 16% more through its investment vehicles. It also deals in equity and preferred equity interest, as well as second-lien and subordinated debt. Unlike CGBD, Bain Capital hasn't exactly lit the industry on fire, but it has caught its stride over the past couple of years. Other reasons to like it? A low cost of debt, a higher-than-average portfolio yield (made even better by its joint ventures), investment-grade debt and an 11% discount to NAV. However I'm nervous about its dividend situation. Dividend coverage has been a strength for the past couple of years, but that could be changing. In 2024, Bain Capital stopped a short streak of dividend hikes and kept its 42-cent regular dividend in place. It instead began paying 3-cent quarterly special dividends, which it has kept up with ever since. That 45 cents quarterly comes out to $1.80 per share in annual dividends. However, analysts expect net investment income to drop from $2.09 per share in 2024 to $1.84 per share this year and $1.82 per share in 2026. That means dividend ratios in the 98%-99% range, which leaves almost no room for error. If BCSF does run into difficulty over the next couple of years, we could see the special dividends reduced or taken away outright—certainly a better look than having to cut a regular dividend, but the practical end result is still less income, even if temporarily. On the other hand, the base-and-special system gives BCSF room to reward us more if Wall Street's expectations prove overly pessimistic. Let's move to another high-yield corner of the market: mortgage real estate investment trusts (mREITs). For the unfamiliar: The typical REIT deals in physical properties—apartments, strip malls, hospitals, casinos. But mortgage REITs deal in 'paper' real estate. They borrow at low short-term rates, lend that cash out in the form of mortgages based on long-term rates, then pocket the difference. If 'long' rates (like those on the 10-year Treasury) are steady or, better yet, declining, that's great news for mREITs. New loans pay less, so their existing loans become more valuable. That's been a mixed bag for mREITs in 2025, which enjoyed declining rates for the first couple months of the year, but have been suffering from a rebound ever since. First up is Two Harbors Investment (TWO), which deals in mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBSs) and other financial assets. It also owns an operational platform, RoundPoint Mortgage Servicing LLC, and it has a direct-to-consumer originations business that's still in its early innings. Whenever we see a yield near 20%, it's almost always caused by a sharp decline in share prices. That's very much the case with Two Harbors, whose shares traded in the $60s before collapsing during COVID, only mildly rebounded, then deteriorated ever since to current prices around $10 per share. That action pretty accurately reflected a miserable operating picture: TWO Dividend Ycharts Still, we're talking about a 17%-plus yield. If there's any sort of redeeming value, it's worth looking into. Well, Two Harbors has been working on lowering its debt-to-equity ratio, the company's book value ticked up in the most recent quarter, and it trades at a low 70% of that (still relatively decimated) book value. But all of those positive bullet points have been canceled out by an 8-K filed near the end of May. Two Harbors announced it was taking a $198.9 million charge related to litigation dating back to 2020 against PRCM Advisers, its former external manager. That comes out to roughly $1.90 per share, or 13% of TWO's last reported book value of $14.66 per share. The potential danger is that this significant hit to book value could impact earnings available for distribution (EAD), putting its current dividend rate of 45 cents per share at risk. While the company doesn't report earnings until July, TWO typically announces its dividends in the middle of the month prior to the month in which it reports—so, in this case, we might know by sometime in mid-June. Too much dividend drama. Take Franklin BSP Realty Trust (FBRT), a mortgage REIT dealing in commercial mortgage-backed securities (CMBSs). Multifamily is king here, at more than 70% of the portfolio, but FBRT is happy to take on just about any type of commercial property—it also holds loans in hospitality, industrial, office, retail and other sectors. Virtually all of its portfolio is senior debt, and nearly 90% of that is floating-rate in nature. Collateralized loan obligations are the bulk of its financing sources at a hair over 80%, but Franklin BSP Realty Trust also has 11% exposure to warehouse lending (credit lines extended by banks to originate mortgages), 5% to repurchase agreements (repo), and sprinklings of unsecured debt and asset-specific financing. FBRT shares are down by double digits year-to-date, but now trade at an attractive 28% discount to book and a P/E of around 7 based on 2026 earnings estimates, which is pretty low among mREITs. And there are reasons for optimism—chiefly, the looming July close on the acquisition of NewPoint Holdings JV LLC. The deal to absorb this privately held commercial real estate finance company could set Franklin apart from other commercial mREITs. Again, though, the dividend situation is perhaps shakier than many of us would want. For one, the payout hasn't budged since the company started trading in 2021. Also problematic—real-estate owned (basically, foreclosures) and short-term non-market financing have been dragging on earnings. On the most recent conference call, CFO Jerome Baglien said, 'While we believe in the long-term earning power of the company to cover the dividend, if REO sales slow or volatile market conditions persist, it could be prudent to revisit our dividend in the short term.' There is a little good news: If earnings expectations stay on track, on the other side of FBRT's short-term drag is a path to more solid dividend coverage longer-term. Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.7%) — Practically Forever. Disclosure: none
