Charismatic Megafauna said:
Farmer, we buying this?
I'm about to end up with a crwd/t 2-stock portfolio
I'm sticking in my T position. The financial media wanted a decision on the merger, either SpinOff or SplitOut. One gave a share reduction and the other a value leakage. The SpinOut was the value leakage. Doesnt matter in the big picture 50% were going to be happy and 50% weren't.
The way that should break down per current numbers. You get .24 shares of warner bros/discovery for every share of T you own. That should end up at $6.67 for WB/D or there abouts and T should move to 18 to 19 on the day the deal is done.
If you like NFLX then you'll like your WB/D even better. Again, once WB/D is on it's own, if AAPL, DIS or Comcast(new entrant in discussion) dont buy WB/D it will be a strategic blunder. Otherwise, WB/D is moving to streaming king. I know that wont likely sit well with NFLX holders. WB/D has more going for it strategically in the streaming sector than NFLX. That strategic advantage will become more clear as WB/D takes off as a stand alone business.
The T side of the equation will continue a path of a 6-ish% dividend at $1.11 per share and focus on what they do best, networks and communications. T will ultimately move up in growth and dividend payout. The numbers reflect a health restoring move for T. It's a buying opportunity if you want to add shares, in my opinion, of T or DISCA.