hey employees and shareholders.....rejoice and Lets celebrate our horrible money losing strategies...hosted by the one and only guy who literally is the head of the company of the company he was somehow gifted to run into the ground....that we are now digesting (don't worry he failed up to CEO of the whole thing and he has a deep executive voice and wears a casual sweater thing to let us know he's one of us....oh wait that's 2019 he hasn't spoken to us in 2.5 years via the town halls that used to exist) and made everyone move to LA in 2017 (as cost of billions to att)...(his words at a town hall of level 1 and 2s in 2017 was "everyone should live in California as least once" and "the cafeteria is amazing"...) and and literally just failed upward to millions of dollars.
I'm soooo effing proud....we just did employee surveys.. I'm sure its worth my pension, 401k, quarterly layoffs, etc to tell my supervisor I wont' recommend people to ATT. what a joke of a survey i've done for over a decade. its all about participation % not the actual results. Yay my VP got 100% participation but he is the worst person on the planet.
ok without further ado....stankey's stank......(as a shareholder I'm scared....)
Starting line of an exciting new era
To: All AT&T employees
Today we completed the spinoff of 100% of AT&T's interest in WarnerMedia, creating a new separate company called Warner Bros. Discovery (WBD). This is an important milestone and puts AT&T at the starting line of an exciting new era.
We now become a simpler company, laser focused on our connectivity business, specifically 5G and fiber, and building on the successes you've driven over the last year and a half. With the close of the transaction, we will invest at record levels to support what YOU do best – build great networks and serve our customers.
Let me address a question many of you have and that's about our stock performance in the near term after a transaction like this:
• First, AT&T stock will trade lower, reflecting only the remaining value of the AT&T Communications business. The value of WarnerMedia now will be reflected in WBD stock after close. Remember, after close, a shareholder will now own shares in AT&T (our communications company) and Warner Bros. Discovery (inclusive of the assets of the former WarnerMedia). For every 100 shares of AT&T stock, a shareholder receives about 24 WBD shares. In other words, value will be transferred, not lost, as a result of the transaction.
• Second, we expect continued stock price volatility over the next few months as our stockholders sort through their options to hold or sell both stocks, which is typical for a deal of this nature.
• Third, I expect this headwind to be temporary and encourage you to focus on the powerful tailwinds of strong execution, innovation and technology.
If you believe that society's demand for connectivity will only grow in our lifetimes, you should also believe that this moment was made for AT&T. The world is changing in our favor, and we are now perfectly positioned to make the most of this moment. With growth comes more opportunity for all our people and our best days are ahead.
I am excited about this next chapter and watching what you achieve as we invest in our company to be America's best broadband provider!
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To give you a better understanding of the AT&T and WarnerMedia/Discovery deal close, please visit AT&T Insider for more information and resources.
The SEC requires the following disclosure:
Statement Concerning Forward-Looking Statements
Information set forth in this communication, including any financial estimates and statements as to the expected timing and effects of the transaction between AT&T, Magallanes, Inc. ("Spinco"), and Discovery constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These estimates and statements are subject to risks and uncertainties, and actual results might differ materially. Such estimates and statements include, but are not limited to, statements about the benefits of the transaction, including future financial and operating results, the combined Spinco and Discovery company's plans, objectives, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the management of AT&T and Discovery and are subject to significant risks and uncertainties outside of our control. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements are the following: risks that the anticipated tax treatment of the proposed transaction is not obtained; risks related to litigation brought in connection with the proposed transaction; risks and costs related to the implementation of the separation of Spinco, including any changes to the configuration of the businesses included in the separation; the risk that the integration of Discovery and Spinco being more difficult, time consuming or costly than expected; risks related to financial community and rating agency perceptions of each of AT&T and Discovery and its business, operations, financial condition and the industry in which it operates; risks related to disruption of management time from ongoing business operations due to the transaction; failure to realize the benefits expected from the transaction; effects of the announcement, pendency or completion of the transaction on the ability of AT&T, Spinco or Discovery to retain customers and retain and hire key personnel and maintain relationships with their suppliers, and on their operating results and businesses generally; and risks related to the potential impact of general economic, political and market factors on the companies or the proposed transaction. The effects of the COVID-19 pandemic may give rise to risks that are currently unknown or amplify the risks associated with the foregoing factors.
These risks, as well as other risks associated with the transaction, are more fully discussed in the proxy statement/prospectus included in the registration statement on Form S-4 filed by Discovery with the SEC in connection with the transaction, the registration statement on Form 10 filed by Spinco with the SEC in connection with the transaction and the information statement made available to AT&T's shareholders in connection with the transaction. Discussions of additional risks and uncertainties are contained in AT&T's and Discovery's filings with the Securities and Exchange Commission. Neither AT&T nor Discovery is under any obligation, and each expressly disclaims any obligation, to update, alter, or otherwise revise any forward-looking statements, whether written or or-l, that may be made from time to time, whether as a result of new information, future events, or otherwise. Persons reading this announcement are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof.