Shares of AT&T (NYSE: T) declined by 2.7% Monday after the telecommunications leader said it would merge its WarnerMedia operations with Discovery (NASDAQ: DISCA) (NASDAQ: DISC.B) (NASDAQ: DISCK) to form a new stand-alone company.
Under the terms of the deal, AT&T would receive $43 billion in cash and debt, and its shareholders would receive 71% of the new entity. Discovery shareholders would own the remaining 29%.
The combined company would be an entertainment powerhouse, with valuable content from the likes of HBO, CNN, TNT, TBS, HGTV, and Food Network. It's forecast to generate $52 billion in annual revenue and $14 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA) by 2023.
Source Fool.com