AT&T shares are up 5% ahead of market opening on Monday
Discovery stock jumped 18% on Monday in premarket trading on news the company is merging with AT&T’s WarnerMedia entertainment assets. AT&T, which plans to focus on its telecom business when the merger is completed in mid-2022, is up 5%. Early Monday, AT&T announced it was spinning off WarnerMedia into an independent company that will merge with Discovery Inc. Under the terms of the all-stock agreement, AT&T will receive $43 billion (a figure subject to adjustment) in a combination of cash, debt securities and WarnerMedia’s retention of certain debt, and AT&T’s shareholders will receive stock representing 71% of the new company. Discovery shareholders will own 29% of the new company, which Zaslav said would announced its new name in coming days.
