AT&T Sets More Details For WarnerMedia Spinoff Ahead Of Discovery Merger – CB

AT&T has firmed up extra particulars of its spinoff of WarnerMedia, which is poised to mix with Discovery in a $43 billion merger.

In an SEC submitting, the telecom large stated it can problem its shareholders a particular dividend on April 5. For every share of AT&T widespread inventory, holders will get 0.24 share in Warner Bros Discovery.

AT&T’s inventory will start two-way buying and selling on April 4, with shareholders getting the choice to purchase or promote shares of AT&T with or with out the WBD shares.

Shareholders may even get a quarterly dividend price a shade lower than 28 cents for every AT&T share, a part of the corporate’s annual dividend of $1.11 a share after the spinoff closes. Due to its unusually excessive variety of particular person traders, fairly than establishments, proudly owning its inventory, AT&T’s dividend is a intently watched obligation on its steadiness sheet. The dividend is payable Could 2 for shareholders of report as of April 14.

The quarterly dividend is in step with the corporate’s earlier steerage.

Regulators and shareholders have signed off on the WarnerMedia-Discovery deal, leaving solely last paperwork to be accomplished earlier than the deal can take impact. A precise cut-off date was not laid out in immediately’s submitting, however it’s anticipated to return within the subsequent week or two. Discovery CEO David Zaslav is ready to run the mixed entity as CEO. The merger will punctuate the exit of AT&T from media and leisure. The corporate beforehand had spun off DirecTV into a brand new entity 30% owned by personal fairness agency TPG. Buying Time Warner and DirecTV led to losses of tens of billions of {dollars}.

AT&T and Discovery proposed the merger final Could, stunning Wall Road after a number of weeks of stealth negotiations.