https://www.reuters.com/business/media-telecom/att-spin-off-warnermedia-43-billion-discovery-media-merger-2022-02-01/
16 replies (most recent on top)
What?! I'm waiting for HR to tell us how competitive the new dividend pay out is.
Bueller?
It's sounds like T wants to align with their competition by not paying dividends. Same with employee benefits and pay.
So, how much is that ownership worth? And will the new company pay a dividend?
Worth is determined by buyers and sellers by the open market. Dividend policy is determined by the board in control at the time.
So AT&T gets $43B and shareholders get 71% ownership in the new company. So, how much is that ownership worth? And will the new company pay a dividend?
He did not tie the two together.
I think you are speaking out of the wrong orifice. Direct quote from his email this morning:
After we close the transaction, AT&T shares will continue to earn dividends. The expected annual dividend per share is being changed from $2.08 to $1.11 to account for:
The distribution of WarnerMedia to AT&T shareholders. AT&T shareholders will own approximately 71% of the new WBD (on a fully diluted basis).
AT&T's plans to increase our investment in 5G and Fiber.
If the dividend was in place before the TWX shareholders owned the company, why would distributing the company back out as standalone have any impact on the dividend.
The board is all like… it’s fine, this is fine.
Just more of the same, buy high, sell low! Stankey will get a massive bonus for this transaction.
T is down 42% past 5 years. Look at the market past 5 years and T is down nearly half. Can’t make this sh-t up.
wow cuts the dividend in half.
thats huuuuuuge.
writing on the wall folks.
He did not tie the two together.
So Sk---y sent an email around explaining that the dividend cut from $2.08 to $1.11 was happening because of the distribution of WM shares to AT&T shareholders and AT&T 5G and fiber investment.
But the dividend was $1.92 before WM was acquired and had historically increased $.04 per year for the last several until 2020 and 2021. So you could argue that at most WM cost $.08 on the dividend over those 2 years (i would argue that's what the pandemic cost) and the decrease from $2.08 to $1.11 is all reflective of AT&T not properly managing is cash and investments.
T is down 5% in the first hour of trading.
And the D O L T S in Toxic-T's BoD will give the Stink another 8 figure bonus for cutting the dividend - a job well done. NOT!
25% discount on hbo max app even though own70%
Too funny! And now CNNLOL is going to the App instead of getting the free ride off subscribers. No worries tho, pebble beach and the celebrity crowd will celebrate how great this tu-d is.
We'll see how well the dividend cut will fly with shareholders...