Has AT&T Stock Gotten Too Cheap?
Telecom company AT&T (NYSE: T) recently ended its journey into digital content, which began in 2015 when it bought DIRECTV for $49 billion, and later bought Time Warner for another $85 billion in 2018. Investors never liked the progress AT&T made with video; the stock is down more than 30% over the past five years.
AT&T is now spinning off its Warner Media business, combining with Discovery to form a stand-alone company. This makes AT&T a dedicated telecom business again, but here are three reasons investors should be excited about that.
Just because AT&T is getting out of streaming and content doesn't mean that its shareholders need to. As a part of the merger between Warner Media and Discovery, AT&T's shareholders will receive 71% of the resulting equity. In other words, if you own AT&T stock, you will be receiving shares of the new company.
Source Fool.com
