By Colin Kellaher

AT&T Inc. on Tuesday said it plans to spin off its stake in WarnerMedia after it completes the planned merger of the unit with Discovery Inc.

AT&T said its shareholders will receive stock representing roughly 71% of the new company, Warner Bros. Discovery Inc., while current Discovery shareholders will own about 29% of the new company.

AT&T also said its board approved an expected post-close annual dividend of $1.11, down from the current rate of $2.08, to account for spinoff.

The company said it is sizing its annual payout at about 40% of projected free cash flow, which it said will enable investment in attractive growth opportunities, adding that it still expects to have among the highest dividend yields in corporate America.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

February 01, 2022 06:53 ET (11:53 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
AT&T (NYSE:T)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more AT&T Charts.
AT&T (NYSE:T)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more AT&T Charts.