AT&T Warner Media spin-off

AT&T (NYSE:T) informed on Tuesday that it would spin-off its interested in WarnerMedia as part as its merger with Discovery (NASDAQ:DISCA), with the deal expected to close in the second-quarter.

As part of the spin-off, AT&T will get $43 billion in a combination of cash and other considerations, and AT&T shareholders will own 71% of the new company, Warner Bros. Discovery. Discovery shareholders will own the remaining 29% of the company on a fully diluted basis.

After the deal closes, each AT&T shareholder will receive 0.24 shares of the new Warner Bros. Discovery common stock for each AT&T share they own.

Warner Bros. Discovery will trade on the NASDAQ under "WBD" ticker symbol, with Discovery shareholders being converted to the WBD ticker, with one vote per share. AT&T will remain on the New York Stock Exchange under the "T" ticker.

AT& will also decrease its annual dividend to $1.11 per share from current $2.08 per share after the spin-off has been completed. Technically it is a dividend decrease but in reality, part of the dividends will be paid in future by WBD. To be seen what is the level of WBD's dividends