AT&T Sets More Details For WarnerMedia Spinoff Ahead Of Discovery Merger
deadline.comAT&T has firmed up more details of its spinoff of WarnerMedia, which is poised to combine with Discovery in a $43 billion merger.In an SEC filing, the telecom giant said it will issue its shareholders a special dividend on April 5.
For each share of AT&T common stock, holders will get 0.24 share in Warner Bros Discovery.AT&T’s stock will begin two-way trading on April 4, with shareholders getting the option to buy or sell shares of AT&T with or without the WBD shares.Shareholders will also get a quarterly dividend worth a shade less than 28 cents for each AT&T share, on top of the company’s annual dividend of $1.11 a share after the spinoff closes.
Because of its unusually high number of individual investors, rather than institutions, owning its stock, AT&T’s dividend is a closely watched obligation on its balance sheet.
The dividend is payable May 2 for shareholders of record as of April 14.The quarterly dividend is in line with the company’s previous guidance.Regulators and shareholders have signed off on the WarnerMedia-Discovery deal, leaving only final paperwork to be completed before the deal can take effect.
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