Here's What Will Happen to AT&T; and Discovery Communications Shares Ahead of the Warner Bros. Discovery Merger

Recently, Discovery Communications (NASDAQ: DISC.A) (NASDAQ: DISC.B) (NASDAQ: DISCK) shareholders officially approved the merger with WarnerMedia, AT&T's (NYSE: T) soon-to-be spun-off company. The resulting company will be Warner Bros. Discovery and begin trading on the Nasdaq Stock Market under the ticker WBD in early April. Before the new company forms, here's what AT&T and Discovery Communications shareholders need to know.

What happens if you own AT&T?

AT&T's WarnerMedia will represent 71% of the newly formed Warner Bros. Discovery, and its shareholders will receive approximately 0.24 shares of the new company for each share of AT&T stock owned. Before that happens, you will have the opportunity to decide whether you want to own just AT&T or Warner Bros. Discovery, or both companies.

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If you own AT&T stock at the end of trading on Monday, April 4, you will receive two temporary stocks in addition to your AT&T T stock before the market opens on Tuesday, April 5. If you sell T before the merger is complete, you will be selling AT&T common stock and the right to receive shares of WBD common stock.

The first temporary stock you will receive before the market opens on Tuesday, April 5, is under the New York Stock Exchange (NYSE) ticker symbol T WI. If you sell T WI, you will be selling only AT&T common stock while retaining the right to receive shares of WBD common stock.

The second temporary stock you will receive before the market opens on Tuesday, April 5, is under the Nasdaq symbol WBDWV. If you sell WBDWV you will be selling your right to receive shares of Warner Bros. Discovery common stock while retaining your shares of AT&T common stock.