3 Reasons to Hold on to Your Warner Brothers Discovery Shares
Shares of the newly merged Warner Brothers Discovery (NASDAQ: WBD) finally began trading last week after a protracted merger saga. The share price was volatile before ultimately ending the week more or less where it began. Many Warner Brothers Discovery shareholders are AT&T (NYSE: T) investors who received shares in the spinoff and own about 71% of the new company post-merger. Some of these investors are selling their newly received shares or evaluating what to do with them. Many are income investors who own AT&T for its high dividend payout and may not be interested in shares of the new company they received as part of the spinoff, as it does not pay a dividend.
Given this dynamic, the stock will almost certainly be volatile in the near term as the shares look for a new home -- but over the long term, AT&T investors (and others) could be rewarded for giving the stock a chance to remain in their portfolios. Here are three reasons for AT&T investors to hold on to their Warner Brothers Discovery shares, and for non-holders to consider adding shares to their portfolios.
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Source Fool.com
