Why the Stock Market Is Focused on the Newest Megamerger
The stock market wasn't able to sustain its upward momentum from before the weekend, with major market benchmarks moving lower on Monday morning. Investors remain concerned about inflationary pressures and their potential to upset the delicate balance that has led to such impressive bull market returns over the past year. As of 11:45 a.m. EDT today, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 173 points to 34,208. The S&P 500 (SNPINDEX: ^GSPC) had slid 23 points to 4,151, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) had fallen 100 points to 13,330.
All eyes on Wall Street were on the latest megamerger, this time affecting the media industry. AT&T (NYSE: T) and Discovery (NASDAQ: DISCA) (NASDAQ: DISCK) made a huge announcement that could ripple across not only the rest of their respective industries but also the entire stock market environment. As the market continues to churn forward, more companies will likely consider moves like the one Discovery and AT&T made.
AT&T and Discovery have agreed to combine some of their assets to create a single stand-alone company that will become a leader in the global entertainment industry. The structure of the transaction is complex but has potentially positive ramifications for everyone involved.
Source Fool.com
