The Warner Bros. Discovery spinoff is quickly approaching and one analyst has high expectations for WBD stock.
Bank of America research analyst Jessica Reif sees massive potential for growth with the Warner Bros. Discovery combination. The analyst says that this is due to the wealth of content and advertising potential of the combined company.
Here’s a statement from the analyst concerning WBD stock collected by Yahoo! Finance.
“The combination of these highly complementary assets, has the potential to create a global media powerhouse. If you step back, this is probably going to be the broadest offering the market has yet to see.”
So what do potential investors in WBD stock need to know about the Warner Bros. Discovery spinoff? First off, shares of WBD stock will be listed on the Nasdaq Exchange. Current expectations are for the deal to close sometime between April 12 and the end of the month.
This will have AT&T (NYSE:T) spinning off Warner Bros., which will then combine with Discovery (NASDAQ:DISCA) to create the new company. Holders of T stock will have the option to acquire 0.24 shares of WBD stock for each share of T stock that they own.
When the spinoff/merger closes Discovery CEO David Zaslav will lead the new company. That will also see Discovery CFO Gunnar Wiedenfels acting as the CFO of the new company. This will have WarnerMedia CEO Jason Kilar leaving the company after the merger.
T stock is up slightly while DISCA shares are down 2.2% as of Wednesday afternoon.
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On the date of publication, William White 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.