Discovery Communications Stock News

AT&T Inc. undefined said Tuesday it has decided to spin off its stake in WarnerMedia in connection with the previously announced deal with Discovery Inc….

AT&T Slides After Slashing Dividend, Unveiling Warner Media Spinoff In a move that was widely anticipated by Wall Street, AT&T has just decided to cut its dividend to $1.1/share and spin off its Warner Media subsidiary, which will be merged with AT&T''s partner, Discovery. Despite being widely expected - the company was trading at a ridiculously high dividend yield north of 8.2% - the decision sent AT&T shares sliding 2% in premarket. Wall Street analysts generally see AT&T as a ''buy'', although some have lowered their long-term price targets in recent weeks. AT&T reported earnings and sales that generally surpassed expectations for the quarter just last week. CEO John Stankey said last week during the earnings call that he was unsure about whether to spin off Warner Media (which owns premium TV/streaming hitmaker HBO). But apparently, he has changed his mind as the blandishments of the 100% cash deal valued at $43 billion were simply too tempting to ignore - especially as the telco fights with Verizon for dominance in 5G, which is a capital intensive endeavor.

AT&T (T) said on Tuesday that it would spin off its interested in WarnerMedia as part as its merger with Discovery (DISCA), with the deal expected to close in

AT&T opted for a spin-off of its WarnerMedia assets as part of its $43 billion media merger with Discovery while proposing a post-close dividend of $1.11 per share for the combined group.

AT&T Board Approves Expected Post-Close Annual Dividend of $1.11 per share, Expected to be Among Highest Dividend Yields in Corporate America All AT&T Shareholders to Receive an Estimated 0.24 shares of Warner Bros. Discovery (WBD) Common Stock for Each Share of AT&T Owned AT&T Shareholders to Own Approximately 71% of New WBD AT&T, Inc. (( T ) today announced that its board of directors has determined to spin off AT&T''s interest in WarnerMedia in connection with the previously announced transaction with Discovery, Inc (NASDAQ: DISCA , DISCB, DISCK)). The transaction, which will spin off 100% of AT&T''s interest in WarnerMedia to AT&T''s existing shareholders in a pro rata distribution, followed by the merger of WarnerMedia with Discovery, is expected to close in the second quarter of 2022. Additionally, AT&T''s board of directors approved an expected post-close annual dividend of $1.11 per AT&T share, to account for the distribution of WarnerMedia to AT&T shareholders and to size the annual dividend payout at approximately 40% of projected free cash flow 1 to enable investment in attractive growth opportunities.

The S&P 500 logged the worst month since March 2020, plunging 5.3% in January.

The telecom giant also cut its dividend by nearly half, sending shares down over 6 percent in pre-market trading.

AT&T said on Tuesday it will spin off WarnerMedia in a $43 billion transaction to merge its media properties with Discovery.

Media company Discovery Networks (NASDAQ: DISCA) stock has been recovering since the lows of the Archegos Capital margin call forced liquidation fiasco that plunged the stock from $78.14 highs to $21.

AT&T Inc. T, +1.15% said Tuesday it has decided to spin off its stake in WarnerMedia in connection with the previously announced deal with Discovery Inc. DISCA, +2.80% and will conduct the transaction

AT&T Inc said on Tuesday it will spin off WarnerMedia in a $43 billion transaction to merge its media properties with Discovery Inc.

NEW YORK, Jan. 27, 2022 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that securities class action lawsuits have been filed on behalf of those who acquired Baidu, Inc., Discovery Inc., and iQIYI Inc. securities from March 22, 2021 to March 29, 2021 (the "Class Period"). The lawsuit alleges throughout the Class Period, Goldman Sachs and Morgan Stanley sold a large amount of their shares in the companies while in possession of material, non-public information about Archegos and its need to fully liquidate its position in the above-referenced companies because of margin call pressure. As a result of these sales, Defendants Goldman Sachs and Morgan Full story available on Benzinga.com

Discovery Highlights How AT&T Is Undervalued

The market seems worried viewers will tune out the media and entertainment stock.