They’re actually spinning off the merger between Warner and discovery into a separate company, making AT&T more like the old AT&T focusing on connectivity rather than content creation. It will also reduce their debt burden.
This is basically an admission that their initial purchase of Warner was a big mistake, which it definitely was. The market is very happy with this move.
Both of these companies have a horrible track record on mergers. AT&T’s purchase of DirectTV and the AOL-TimeWarner merger destroyed more shareholder value than just about any other deals in history.
Investors need to rein in these CEOs and their empire building fantasies.