Todd Spangler NY Digital EditorAT&T CEO John Stankey said the decision to spin off WarnerMedia — and merge it with Discovery — came down to his belief that investors have undervalued the media division under the telco’s ownership.About WarnerMedia, he said, “It’s trading right now like a cable network asset,” speaking Tuesday at the Goldman Sachs Communacopia Conference.
Following the separation from AT&T, “we should start to see [WarnerMedia] valued in the same way as other direct-to-consumer businesses,” said Stankey, no doubt eyeing the relatively high price-to-earnings multiple of the likes of Netflix.He acknowledged that “there’s uncertainty hanging in the stock right now,” including whether the WarnerMedia-Discovery deal will get.
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