05-17-2021, 01:59 PM
So a bit regarding the T deal.
From what I understand.
T will do the spin-off thingy and create a separate company, let's call it WarnerMedia.
Then T will distribute the shares of WarnerMedia as a dividend to T shareholders.
Then, immediately, WarnerMedia will merge with Discovery.
T will also get some $40B or so of cash and stuff.
There will be two individual companies remaining, and from what I gather they will have little to no ties with each other.
There will be T. Which will be right back to the dog house. Zero growth, still a massive debt pile, and a history of yet another acquisition that did not work out as intended. T will be dead money. There is also the chance that the dividend cut will be large, and then it'll absolutely crater and not even Indiana Jones will be able to find T from the bottom of it's 25 year low.
Then there will be whatever WarnerMedia + Discovery will be called. This will all depend on the valuation, but it'll be an interesting company to watch.
I want nothing to do with T once they kick out HBO max etc. That was their growth pillar. That was the thing that was going to increase EPS and one day in the future provide for a dividend increase larger than $0.01.
I already sold half of my T position. Most of the proceeds went into ATCO (the canadian utility company) and ERES reit (also canadian, though the real estate they invest in is in Europe). I'll keep a close eye on the remaining T shares while I try to decide what to do.
From what I understand.
T will do the spin-off thingy and create a separate company, let's call it WarnerMedia.
Then T will distribute the shares of WarnerMedia as a dividend to T shareholders.
Then, immediately, WarnerMedia will merge with Discovery.
T will also get some $40B or so of cash and stuff.
There will be two individual companies remaining, and from what I gather they will have little to no ties with each other.
There will be T. Which will be right back to the dog house. Zero growth, still a massive debt pile, and a history of yet another acquisition that did not work out as intended. T will be dead money. There is also the chance that the dividend cut will be large, and then it'll absolutely crater and not even Indiana Jones will be able to find T from the bottom of it's 25 year low.
Then there will be whatever WarnerMedia + Discovery will be called. This will all depend on the valuation, but it'll be an interesting company to watch.
I want nothing to do with T once they kick out HBO max etc. That was their growth pillar. That was the thing that was going to increase EPS and one day in the future provide for a dividend increase larger than $0.01.
I already sold half of my T position. Most of the proceeds went into ATCO (the canadian utility company) and ERES reit (also canadian, though the real estate they invest in is in Europe). I'll keep a close eye on the remaining T shares while I try to decide what to do.