Todd Spangler NY Digital EditorShares of Discovery and AT&T moved in different directions in the wake of the proposed merger of WarnerMedia and Discovery.Discovery shares opened up 10% Monday — before the stock tumbled into negative territory.
The stock was down 0.3% as of 11:01 a.m. ET.Shares of AT&T, which will get $43 billion in cash as part of offloading WarnerMedia into the new venture, were up 2.9% in midmorning trading.Under the pact, AT&T shareholders will control 71% of the new company, while Discovery shareholders would own 29%.
The deal is expected to close in mid-2022 subject to approval by regulators and Discovery shareholders.Discovery chief David Zaslav will lead the combined WarnerMedia-Discovery, which is yet unnamed.
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