The Discovery - AT&T Deal: Important Takeaways From The Discovery Perspective

Summary

  • Discovery is acquiring WarnerMedia from AT&T to create Warner Bros. Discovery.
  • I believe this is a clear case where 1 + 1 will equal at least 2.5, potentially even 3.
  • I am writing put options on the Discovery stock to take advantage of the volatility.
  • Looking for a helping hand in the market? Members of European Small-Cap Ideas get exclusive ideas and guidance to navigate any climate. Learn More »

Discovery Times Square Marquee New York City

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Introduction

The past week was an important one for the shareholders of AT&T (NYSE:T) and Discovery (DISCA) (DISCB) (DISCK) as the CEO of AT&T is now expecting the

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This article was written by

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The Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks.

He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and dividend income for continuous cash flow. Features include: two model portfolios - the European Small Cap Ideas portfolio and the European REIT Portfolio, weekly updates, educational content to learn more about the European investing opportunities, and an active chat room to discuss the latest developments of the portfolio holdings. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of T either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I have a long position in AT&T, no position in Discovery at this time. I have written put options on both AT&T and Discovery and all put options are currently OTM. I may write more put options on Discovery.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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