AT&T shares fell 6% in premarket trading
Tiger Newspress2022-02-01
AT&T shares fell 6% in premarket trading.
AT&T Inc. said Tuesday it has decided to spin off its stake in WarnerMedia in connection with the previously announced deal with Discovery Inc. and will conduct the transaction through a pro rata distribution to shareholders after merging WarnerMedia with Discovery.
The deal is expected to close in the second quarter. AT&T shareholders will receive 0.24 shares of the new Warner Bros. Discovery stock for each share owned. Warner Bros. Discovery will be listed on Nasdaq under the ticker "WBD." AT&T shareholders will own about 71% of WBD. The board has also approved a post-close annual dividend of $1.11 per AT&T share, which it said will create one of the highest dividend yields in Corporate America, and to size the annual dividend payout at about 40% of projected free cash flow to give it leeway to invest in growth opportunities. "No action is required by AT&T's shareholders to receive shares of WBD common stock in the merger, when it occurs," AT&T said in a statement. Proceeds of the deal will be used to deleverage.
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