- Discovery has filed the prospectus for its upcoming merger with the WarnerMedia business to be split off from AT&T.
- Management projections imply more than a double in Discovery A and C shares from current levels.
- AT&T still looks fairly valued based on the current market price of Discovery but has upside if the optimistic projections are realized.
- AT&T shareholders should expect around 0.239 shares of Warner Bros. Discovery on average. Each investor's actual allocation will depend on the Exchange Offer outcome.
For further details see:
AT&T And Discovery: Insights From The Merger Prospectus