AT&T (T) has finalized plans to spinoff its WarnerMedia entertainment division in a $43 billion U.S. deal with Discovery Communications (DISCA).
The U.S. telecommunications giant said it will distribute shares of the new Warner Bros. Discovery company as a dividend of $1.11 U.S. per share to existing shareholders of AT&T stock.
Once the deal is finalized, AT&T shareholders will own 71% of the new Warner Bros. Discovery company and will receive a 0.24 share of Warner Bros. Discovery stock for each AT&T share they own.
AT&T anticipates spending $20 billion U.S. this year to expand the rollout of its 5G wireless network. The company has said it plans to focus on its wireless business going forward.
Warner Bros Discovery is playing catch up to larger streaming rival Netflix (NFLX) even though WarnerMedia's HBO Max grew faster in the U.S. during last year’s fourth quarter, ending 2021 with 74 million subscribers.
The spinoff of WarnerMedia is expected to close in the second quarter of this year, AT&T said in a news release.
Related Stories
