Business News articles state shareholders of T will receive 71% of the new entity. If a shareholder has $50k (value) of T shares how much of the new company shares will they receive in like value?
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A lot of sites have the wrong market cap for DISCA. Look it up on Bloomberg.com, it’s what the pros use. It shows 22b
T share's don't play into the equation. It will be based on value of the new company's stock, which will be some portion of current discovery's shares, plus the value of adding TW.
if the outstanding shares are 670m, how is market cap of discovery is showing as 16b ? 670 x 33 = 22b
And, at&t 401k at&t shares fund is a “fund of only at&t shares”. This fund will get disca shares. I don’t know what the fund will do with those shares..keep them Or sell them off to buy more at&t shares.
More importantly, does anyone know if the stock employee's received for their 401k match qualifies for receiving shares in the new company?
Discovery’s latest 10-Q shows 670m diluted shares. Preferred shares add another 30m or so. And DISCA closed today at 33, not 32.
How are you seeing 8$ ?
I am seeing 6$
32$ X 500m x 71 / 29 / 7000m
Discovery shareholders get 29%. At&t gets 71%. Discovery has 500m shares and at&t has 7b. Discovery stock is at 32$
$4 per T share is Barron’s estimate at the low end. At the high end they think it could be $16 or so. Currently it’s around $8 based on Discovery’s stock price. To answer OP’s question, if you have $50k in T stock today, you’ll receive about $14k of stock in Discovery in a year. Between now and then you’ll also collect around $3,600 in dividends.
Per Barron’s expect about $4 if newco stock per one share T