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AT&T (T), Discovery Close Deal to Create Warner Bros. Discovery
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AT&T Inc. (T - Free Report) and Discovery, Inc. have closed the deal to combine the WarnerMedia business with Discovery.
The combination creates a global media and entertainment giant, Warner Bros. Discovery, Inc., which will trade on the Nasdaq under the symbol “WBD”, beginning Apr 11.
Warner Bros. Discovery will create and distribute the world’s most differentiated and complete portfolio of content, brands and franchises across television, film and streaming.
The new company combines WarnerMedia’s entertainment, sports and news assets with Discovery’s non-fiction and international entertainment and sports businesses.
This marks a significant milestone not only for Warner Bros. Discovery but also for its shareholders, distributors, advertisers and particularly consumers. The company intends to bring more choices to consumers worldwide while advancing creativity.
With the close of this deal, AT&T plans to invest at record levels in its growth areas of 5G and fiber. The company expects to strengthen its balance sheet and reduce debt while continuing to pay an attractive dividend.
The combination of the two companies will strengthen WarnerMedia’s industry-leading position in media and streaming.
Per the deal, at close AT&T received $40.4 billion in cash and WarnerMedia’s retention of certain debt. AT&T’s shareholders also received 0.241917 shares of WBD for each share of AT&T they held at close. Thus, AT&T’s shareholders received 1.7 billion shares of WBD, which represents 71% of WBD shares.
Discovery’s existing shareholders own the remainder of the new company. In addition to their new shares of WBD, AT&T’s shareholders continue to hold the same number of shares of AT&T they held immediately prior to close.
AT&T continues to invest in key areas of business and adapt to the evolving market scenario for long-term growth.
The stock has lost 19.4% in the past year compared with the industry’s decline of 9.5%.
Image Source: Zacks Investment Research
The Dallas, TX-based company is likely to benefit from investments to deliver 5G capabilities for new use cases to its expanding customer base.
Gogo Inc. (GOGO - Free Report) is a better-ranked stock in the broader Zacks Computer and Technology sector, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 25% over the past 60 days.
Gogo delivered a trailing four-quarter earnings surprise of 65%, on average. It has soared 91.5% in the past year.
Nokia (NOK - Free Report) , carrying a Zacks Rank #2 (Buy), is another solid pick for investors. The consensus estimate for current-year earnings has been revised upward by 5% over the past 60 days.
Nokia pulled off a trailing four-quarter earnings surprise of 205.2%, on average. It has moved up 32% in the past year.
Sierra Wireless, Inc. carries a Zacks Rank #2. The consensus mark for current-year earnings has been revised upward by 237.5% over the past 60 days.
Sierra Wireless pulled off a trailing four-quarter earnings surprise of 58%, on average. The stock has returned 11.7% in the past year.
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AT&T (T), Discovery Close Deal to Create Warner Bros. Discovery
AT&T Inc. (T - Free Report) and Discovery, Inc. have closed the deal to combine the WarnerMedia business with Discovery.
The combination creates a global media and entertainment giant, Warner Bros. Discovery, Inc., which will trade on the Nasdaq under the symbol “WBD”, beginning Apr 11.
Warner Bros. Discovery will create and distribute the world’s most differentiated and complete portfolio of content, brands and franchises across television, film and streaming.
The new company combines WarnerMedia’s entertainment, sports and news assets with Discovery’s non-fiction and international entertainment and sports businesses.
This marks a significant milestone not only for Warner Bros. Discovery but also for its shareholders, distributors, advertisers and particularly consumers. The company intends to bring more choices to consumers worldwide while advancing creativity.
With the close of this deal, AT&T plans to invest at record levels in its growth areas of 5G and fiber. The company expects to strengthen its balance sheet and reduce debt while continuing to pay an attractive dividend.
The combination of the two companies will strengthen WarnerMedia’s industry-leading position in media and streaming.
Per the deal, at close AT&T received $40.4 billion in cash and WarnerMedia’s retention of certain debt. AT&T’s shareholders also received 0.241917 shares of WBD for each share of AT&T they held at close. Thus, AT&T’s shareholders received 1.7 billion shares of WBD, which represents 71% of WBD shares.
Discovery’s existing shareholders own the remainder of the new company. In addition to their new shares of WBD, AT&T’s shareholders continue to hold the same number of shares of AT&T they held immediately prior to close.
AT&T continues to invest in key areas of business and adapt to the evolving market scenario for long-term growth.
The stock has lost 19.4% in the past year compared with the industry’s decline of 9.5%.
Image Source: Zacks Investment Research
The Dallas, TX-based company is likely to benefit from investments to deliver 5G capabilities for new use cases to its expanding customer base.
T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Gogo Inc. (GOGO - Free Report) is a better-ranked stock in the broader Zacks Computer and Technology sector, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 25% over the past 60 days.
Gogo delivered a trailing four-quarter earnings surprise of 65%, on average. It has soared 91.5% in the past year.
Nokia (NOK - Free Report) , carrying a Zacks Rank #2 (Buy), is another solid pick for investors. The consensus estimate for current-year earnings has been revised upward by 5% over the past 60 days.
Nokia pulled off a trailing four-quarter earnings surprise of 205.2%, on average. It has moved up 32% in the past year.
Sierra Wireless, Inc. carries a Zacks Rank #2. The consensus mark for current-year earnings has been revised upward by 237.5% over the past 60 days.
Sierra Wireless pulled off a trailing four-quarter earnings surprise of 58%, on average. The stock has returned 11.7% in the past year.