What happens if the AT&T-Time Warner merger is blocked?
If the merger is officially blocked, AT&T would be required to pay Time Warner $500 million in a so-called "reverse break-up fee" — but Time Warner stands to lose more. The company would lose out on an $85 billion acquisition, which would have gone directly to its shareholders and executives.
When did AT&T acquire Time Warner?
Three days later on Jun. 15, 2018, AT&T announced that it had acquired Time Warner . For a brief two months, the legal dust seemed to have settled — that is, until the DOJ decided to appeal to the U.S. District Court's decision on Aug. 6, 2018.
What happened to the AOL Time Warner merger?
This potential merger was poised to make AOL Time Warner the largest entertainment company in the 21st century. Revenue Enhancement through Premium Products and Existing Subscribers: Both AOL and Time Warner had millions of subscribers.
What's prompting regulatory concern about the AT&T/Time Warner deal?
That’s what’s prompting regulatory concern about the AT&T/Time Warner deal. Even if regulators eventually give AT&T the green light, the merger may be delayed well into 2017, by which time the media landscape will undoubtedly have changed further.
What will ATT shareholders get in Discovery deal?
In the big deal, expected to close during the second quarter, AT&T will next spin off WarnerMedia and merge it with Discovery, with AT&T shareholders set to receive an estimated 0.24 share in the new company for each AT&T share held. AT&T stockholders will end up owning 71 percent of the new Warner Bros.
How Much Will Warner Discovery be worth?
The combined value of the company is predicted to be $130 billion, according to Axios, and its 2023 revenue is anticipated to be around $52 billion, with $15 billion expected from DTC revenue.
Will AT&T shareholders get Time Warner stock?
AT&T shareholders as of the stock dividend record date will be entitled to receive shares of WarnerMedia Spinco common stock, representing 100% of AT&T's interest in WarnerMedia.
What happens to Discovery shares after merger?
Discovery shareholders will own 29% of the new company. The estimated value of the combined company is $130 billion. The merger has also facilitated a financial windfall to Discovery Inc. CEO David Zaslav, who saw his executive compensation package increased more than sixfold to $246 million from $37.7 million in 2020.
Is Warner Bros stock a good investment?
The rating outlook is stable. In terms of forward non-GAAP P/E, WBD is currently trading at 36.05x, which is 106.3% higher than the 17.47x industry average. Also, its forward Price/Book of 4.54x is 105.1% higher than the 2.21x industry average.
Is Warner Bros a good investment?
When looking beyond 2022, the company's disciplined approach to financials, its diverse revenue streams, and its impressive mix of content and brands are key factors that make Warner Bros. Discovery a worthwhile, long-term investment.
Is AT&T a buy sell or hold?
AT&T has received a consensus rating of Hold. The company's average rating score is 2.39, and is based on 7 buy ratings, 11 hold ratings, and no sell ratings.
Will WBD ever pay a dividend?
Warner Bros. Discovery stock, which was up 0.4%, to $23.10, on Thursday, has no dividend and the company has no current plans to pay one as it focuses on debt reduction.
Is AT&T stock going to split?
AT&T Time Warner Split Off AT&T shareholders will control 71% of the combined company, with $10s of billions of freed debt from the parent company. This will result in roughly 0.24 shares per current AT&T shareholder. Based on Discovery's current share price, that's roughly $6.13 / share in asset value per AT&T share.
What do ATT shareholders get?
AT&T's board of directors also declared a second-quarter dividend of 27.75 cents a share, the first quarterly dividend under a reduced annual payout that executives outlined last month. The dividend will be payable on May 2 for shareholders of record as of April 14.
Is WBD a good buy?
Out of 12 analysts, 4 (33.33%) are recommending WBD as a Strong Buy, 2 (16.67%) are recommending WBD as a Buy, 5 (41.67%) are recommending WBD as a Hold, 0 (0%) are recommending WBD as a Sell, and 1 (8.33%) are recommending WBD as a Strong Sell.
Will Warner Bros Discovery pay a dividend?
Warner Bros. Discovery stock, which was up 0.4%, to $23.10, on Thursday, has no dividend and the company has no current plans to pay one as it focuses on debt reduction.
What will happen to discovery?
AT&T shareholders will control 71% of Warner Bros. Discovery.
Does WBD pay a dividend?
Warner Bros Discovery (NASDAQ:WBD) formed last week when WarnerMedia, a spin-off from AT&T (T) merged with Discovery Inc. However, WBD does not pay a dividend yet. AT&T shareholders are likely not very happy with this. For every 100 shares in T stock, they received 24 shares of WBD stock.
When did AT&T merge with Time Warner?
AT&T first announced plans to merge with entertainment company Time Warner back in 2016. The $85 billion deal solicited strong words from then-presidential candidate Donald Trump, who claimed the merger would put "too much concentration of power in the hands of too few.".
What is Time Warner?
Time Warner is one of the largest media and entertainment companies in the world, controlling a number of popular brands including TNT, TBS, CNN, and HBO, as well as the Warner Bros. line of enterprises. If AT&T's acquisition of Time Warner was to go through, the telecommunications titan would be able to market Time Warner's massive pool ...
What did the Justice Department say about the merger?
The Justice Department, which sued both companies in November to block the deal, argued that the merger would lead to “higher prices and less innovation for millions of Americans.”. But wait.
Who was the judge that blocked the merger of AT&T and Time Warner?
That lawsuit landed in the courtroom of Judge Richard Leon, a George W. Bush appointee, in a U.S. District Court in Washington, D.C.
How much money has M&A been made in 2018?
M&A is a major area, with over $409 billion in deals announced so far in 2018 alone. This is a jump of two-thirds over the same time last year. It's also part of a broader trend: from 2010 to 2016, the number of proposed mergers that were passed along to the federal government for approval climbed by 58%.