Buy, Hold or Walk Away: AT&T’s $43B Move Triggers One Signal

In this episode of The Bull & The Bear, Charles Sizemore and I tell you where we think AT&T’s stock is headed after its big merger news.

You know those times when you look back at a decision you made and think:

Well, it was a good idea at the time.

I have to believe this is what has been running through the minds of AT&T Inc. (NYSE: T) management over the last week.

On Sunday, the telecom conglomerate announced it was merging its Warner Media assets with Discovery Inc. (Nasdaq: DISCA) — essentially dissolving the $85 billion mega-merger done in 2018.

In today’s episode of The Bull & The Bear, Green Zone Fortunes co-editor Charles Sizemore and I look at the AT&T merger from 2018 and its pending spin-off. We tell you what it means for investors.

Clearly, AT&T Didn’t Think This Through

Sometimes you get so excited about something that you don’t think about the consequences … you just act.

That might be the case here.

AT&T and Time Warner announced the original merger in 2016.

Then, the newly inaugurated Trump administration’s Justice Department pumped the brakes and filed an antitrust lawsuit against AT&T.

Two years later, a federal district court judge said the DOJ did not sufficiently prove customers would pay more for services or that rivals would be charged more to host Time Warner content if the deal was completed.

So, AT&T spent two years and likely millions of dollars in legal fees to fight the federal government, only to undo the process three years later.

It seems like a situation where AT&T’s eyes were much bigger than its stomach.

In this episode of The Bull & The Bear, we’ll tell you where we think AT&T and this new spin-off company is headed in the future (and whether you should consider a buy or sell).