Warner May Have Been Out of Place at AT&T, But It Was Still Profitable
AT&T (NYSE: T) CEO John Stankey didn't say as much, but AT&T's recent decision to sell its WarnerMedia unit to television production outfit Discovery (NASDAQ: DISC.A) (NASDAQ: DISCK) at a loss less than three years after it was acquired speaks volumes. Good riddance, he seems to be subtly suggesting.
But before cheering the fact that AT&T will now be able to better focus on its core telecom competency, know that WarnerMedia was by no means a drag on the company's bottom line. Quite the contrary, actually. Not only is the film and TV media unit surprisingly profitable, its young HBO Max product is a legitimate streaming contender that could have evolved into a key profit center. The company is actually giving up a lot by bailing out of the entertainment business now.
Here's how much it's giving up.
Source Fool.com
