Today’s market has been a rather red one thus far. With most indices climbing back from this morning’s decline, certain stocks have continued their decline into afternoon trading. For investors in Warner Bros. Discovery (NASDAQ:WBDWV), which will eventually become WBD stock, this has certainly been the case.
Today’s move is somewhat interesting, as the Warner Bros. Discovery spinoff/merger is generating significant excitement. In particular, investors appear to be looking forward to the closing of this merger. Expectations are that this merger could take effect tomorrow (April 8), which would result in the first day of trading for WBD stock. Previously, expectations were that this deal would close on Monday, April 11.
A quicker merger could suggest that both parties are ready to rock and roll. Generally, investors may view this as a positive development. Nonetheless, the market has taken a bearish tone, with Warner Media trading lower at the time of writing.
Let’s dive into what investors may want to know about this upcoming merger.
What to Know About WBD Stock
This pending mega merger has been in the works for nearly a year. Accordingly, as the merger date approaches, investor excitement is likely to spill over into some interesting volatility in the days to come.
The combined company, which is expected to have a market capitalization around $45 billion, will incorporate a wide array of divisions and businesses. Accordingly, a major shakeup of the boardroom will take place resulting from this merger. Among the notable moves was the announcement that WarnerMedia CEO Jason Kilar will be stepping down from his role. Other WarnerMedia executives have stepped down as well, suggesting this combined company will have fresh perspectives. Right now, the market doesn’t appear to be cheering these moves.
That said, there are a number of other housekeeping items to take place in the coming days. As a result of this deal, AT&T (NYSE:T) shareholders will begin to spin off WarnerMedia and will retain 71% of the merged entity. A stock dividend will be provided, granting shareholders these new shares. Thus, for those invested in AT&T, that brokerage account may look different by week’s end.
Overall, WBD stock will be one to keep on the watch list in the next day or two. It’s going to be fun to watch how this stock trades on its debut.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
