DISCB - Moffett stays Neutral in valuing the new (old) AT&T

It's April 5, the record date for AT&T's (T -0.7%) spin-off of WarnerMedia for a blockbuster combination with Discovery (DISCA -2%), and that's an occasion for MoffettNathanson to set up its expectations for the communications company that will stay behind. AT&T deserves some credit for making a "hard decision" to re-focus on core business, analyst Craig Moffett says - and for reversing course so quickly, just three short years after closing on an acquisition of Time Warner. "It's tempting to think of this moment as a fresh start," Moffett says, but breaking AT&T apart doesn't undo damage done by overpaying for DirecTV and doubling down on Time Warner. The company's still over-levered even after unwinding those deals, and "left AT&T's core businesses weaker for having spent three critical years with management’s attention focused elsewhere." "And so ends a long and ugly chapter in the storied history of a great American

For further details see:

Moffett stays Neutral in valuing the new (old) AT&T