Telecom company AT&T (NYSE:T) recently ended its journey into digital content, which began in 2015 when it bought DIRECTV for $49 billion, and later bought Time Warner for another $85 billion in 2018. Investors never liked the progress AT&T made with video; the stock is down more than 30% over the past five years.
AT&T is now spinning off its Warner Media business, combining with Discovery to form a stand-alone company. This makes AT&T a dedicated telecom business again, but here are three reasons investors should be excited about that.
1. Turning one stock into two
Just because AT&T is getting out of streaming and content doesn't mean that its shareholders need to. As a part of the merger between Warner Media and Discovery, AT&T's shareholders will receive 71% of the resulting equity. In other words, if you own AT&T stock, you will be receiving shares of the new company.
The new company will have all of AT&T's media assets, including HBO and HBO Max, Warner Bros., DC Universe, TBS, TNT, CNN, Cartoon Network, and many more brands and channels, which will be combined with Discovery's own channel lineup, including Discovery, HGTV, Food Network, TLC, and more.
The new company, called Warner Bros. Discovery, will clearly have a massive collection of intellectual property, as well as a streaming service to distribute it. Warner Media will bring HBO Max, and Discovery also owns a service it calls Discovery Plus.
The new company will obviously need...
Read Full Story: https://www.fool.com/investing/2021/09/06/has-att-stock-gotten-too-cheap/
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.