Warner Bros. Discovery Stock Rises Then Dips In Nasdaq Debut; Wall Street Sees Upside, Weighs In On Streaming, Cable, Debt & Leadership
deadline.comWarner Bros. Discovery shares had a volatile debut, rising early in the session but heading lower as analysts dissected the newly combined entity following the deal’s close on Friday.
Reports out today – and more will follow – range from a thumbs-up on WBD’s streaming, content and planned cost savings, to caution on its debt and its big portfolio of linear cable networks.The stock opened at $24.08 and rose to $26.26 before settling.
With several hours still left of trading, it’s currently changing hands at $23.78.The broader market is down too and the merger mechanics may be part of WBD’s dip because the deal had AT&T distribute shares of the new WBD to AT&T stockholders, many of whom were expected to turn right around and sell them.
That’s because AT&T holders, who ended up with 71% of WBD shares, like the telco for its dividend and WBD doesn’t pay one.About 45% of AT&T shares are held by retail investors (or individuals, vs institutions).
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