Telco giant AT&T has announced that it will spin-off, rather than split-off, all of its interest in WarnerMedia.
That will be followed by the previously announced planned merger of WarnerMedia with Discovery to form the new company Warner Bros. Discovery. That company plans to continue investing billions in streaming.
The deal is now expected to close earlier than anticipated, subject to satisfaction of certain conditions including approval by the DOJ, and potentially be done by the second quarter of this year.
Once spun-of, AT&T shareholders will own shares of both companies – specifically, they will own a total of 71% of the new Warner Bros. Discovery company, the remaining 29% to be owned by existing Discovery shareholders.
Source: CNBC
