Warner Bros. Discovery Stock Flat on First Day of Trading – But AT&T Shares Jump 8%
12.04.2022 - 01:19
/ thewrap.com
AT&T’s stock price on Monday jumped 8%, to $19.67, as a probable result of Friday’s closure of the deal. The Warner Bros. Discovery share price dipped to $24.48 in after-hours trading, but the start and finish were close enough that the day could hardly be called a roller coaster.Monday was the first day of public trading for Warner Bros.
Discovery. According to the original merger announcement, AT&T receives $43 billion in a combination of cash, debt securities and WarnerMedia’s retention of certain debt. AT&T shareholders receive stock representing 71% of the new company; they received 0.24 WBD shares for each share of AT&T stock that they hold, according to Barron’s.
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.Last May, Zaslav was announced as head of Warner Bros Discovery, the company created by merging Discovery Inc.
and WarnerMedia, and signed a new employment agreement through the end of 2027. His new contract was packed with $190 million in stock options on top of $3 million in base pay. The merger of the two companies is expected to be completed in early Q2, most likely in April, the company has said.
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