U.S. markets close in 6 hours 13 minutes
  • S&P 500

    4,447.02
    -8.46 (-0.19%)
     
  • Dow 30

    35,040.40
    +242.40 (+0.70%)
     
  • Nasdaq

    14,900.12
    -147.58 (-0.98%)
     
  • Russell 2000

    2,255.26
    +7.19 (+0.32%)
     
  • Crude Oil

    75.49
    +1.51 (+2.04%)
     
  • Gold

    1,750.90
    -0.80 (-0.05%)
     
  • Silver

    22.58
    +0.16 (+0.69%)
     
  • EUR/USD

    1.1699
    -0.0019 (-0.16%)
     
  • 10-Yr Bond

    1.4960
    +0.0360 (+2.47%)
     
  • GBP/USD

    1.3701
    +0.0020 (+0.15%)
     
  • USD/JPY

    110.9300
    +0.2450 (+0.22%)
     
  • BTC-USD

    43,466.95
    +272.71 (+0.63%)
     
  • CMC Crypto 200

    1,081.12
    -20.40 (-1.85%)
     
  • FTSE 100

    7,055.64
    +4.16 (+0.06%)
     
  • Nikkei 225

    30,240.06
    -8.75 (-0.03%)
     

AT&T anticipates pending WarnerMedia-Discovery deal to close by mid-2022

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
AT&T logo is seen on a smartphone in front of displayed Discovery and Warner Media logos in this illustration
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

(Reuters) - Telecoms company AT&T said it anticipates that the pending deal to combine WarnerMedia's media assets with Discovery Inc will close by the middle of 2022.

AT&T is in the process of unwinding its expensive media investments to focus on its original business of providing phone and internet services.

It is combining WarnerMedia's media assets with Discovery to create a proposed stand-alone company, Warner Bros. Discovery.

"After close of that transaction and on a pro-forma basis, AT&T expects annual revenues to grow at a low single digits compound annual growth rate (CAGR) from 2022 to 2024 with annual adjusted EBITDA and adjusted earnings per share growing at a CAGR in the mid-single digit range", AT&T Chief Financial Officer Pascal Desroches said in an update to shareholders on Tuesday.

After the deal closing, the company said it anticipates annual dividends paid of $8 billion to $9 billion, reflecting a payout ratio of 40% to 43% on projected free cash flow of $20 billion plus in 2023.

(Reporting by Kanishka Singh in Bengaluru; Editing by Stephen Coates)