Should I Buy At T Stock 2017
Under the terms of the merger, Time Warner Inc. shareholders received 1.437 shares of AT&T common stock, in addition to $53.75 in cash, per share of Time Warner Inc.1 As a result, AT&T issued 1,185M shares of common stock and paid $42.5B in cash. Including net debt from Time Warner, we now have $180.4B in net debt.
should i buy at t stock 2017
Only for stockholders who are still holding certificates representing shares of old AT&T common stock. These are the certificates that were not exchanged as part of old AT&T's 1-for-5 reverse stock split in November 2002.
Pursuant to the acquisition, each share of old AT&T common stock was converted into .77942 of a share of new AT&T common stock. No fractional shares were issued for your new AT&T common stock; instead, you should have received a cash-in-lieu-of check. For participants in the DirectSERVICE Investment Program for Stockholders of AT&T Inc. (the "DRP"), fractional shares due participants will be aggregated and held by the Plan Administrator of the DRP on behalf of participants and shown on their accounts. When the participant acquires a whole share, it will be credited to the participant's uncertificated account.
Approximately 10 to 15 business days following the effective date of the acquisition, you should have received a Transaction Advice form from the exchange agent, Computershare, that showed how many uncertificated shares were automatically credited to your new AT&T account. Included was your cash-in-lieu-of check for your fractional share, if applicable.
In order to ensure the proper registration of your ownership of new AT&T common stock and to collect any cash in lieu of a fractional share and any dividends or distributions declared by the new AT&T board of directors, you must submit your old AT&T certificates for exchange. Under the terms of the agreement governing the acquisition, new AT&T will continue to withhold dividends and distributions on new AT&T common stock when old AT&T certificates are not exchanged.
If you held your shares in uncertificated form, your shares were automatically exchanged, and you should have received a Transaction Advice form within 10 to 15 business days from the effective date of the acquisition.
If you hold old AT&T certificated shares, you should have received an Exchange Form with instructions on how to complete the exchange process for the old AT&T certificated shares within 10 to 15 days from the effective date of the acquisition. Once you submit your old AT&T certificate(s) with your completed Exchange Form, it will take Computershare about 10 business days to send you a Transaction Advice Form reflecting your new AT&T ownership.
In 2018, AT&T acquired Time Warner, nearly two years after it had first announced plans to buy the mass media and entertainment conglomerate for $85.4 billion. For a while, though, it looked like the deal might not go through after the Department of Justice sued to block the merger in November 2017, citing claims that AT&T might try to charge competing distributors higher prices for Time Warner content.
As of October 2018, AT&T had seen its worst year since the 2008 financial crisis with stocks down more than 20% for the year. It was partly due to its lagging wireless business and because of its multimillion-dollar media bet in DirecTV in 2014 that failed to pay off.
However, last November, telecommunications industry analyst Craig Moffett downgraded AT&T's stock to a sell, saying AT&T's wireless business can't possible carry its other struggling segments in 2020.
In its predictions for next quarter, Bank of America said AT&T's stock can increase 10% due to earnings growth on its new, cost-cutting initiatives, plus the new Warner Brother's movie "Birds of Prey," which is slated to premier in February.
In 2005, SBC purchased its former parent AT&T Corp. and took on its branding, with the merged entity naming itself AT&T Inc. and using its history, a version of its iconic logo and stock-trading symbol which launched on December 30, 2005. AT&T Inc. acquired BellSouth Corporation in 2006, the last independent Baby Bell company, making its formerly joint venture Cingular Wireless (which had acquired AT&T Wireless in 2004) wholly owned and rebranding it as AT&T Mobility. AT&T Inc. also acquired Time Warner in 2016, with the proposed merger confirming on June 12, 2018 and the aim of making AT&T the largest and controlling shareholder of Time Warner and rebranding it as WarnerMedia in 2018. The company later withdrew its equity stake in WarnerMedia in 2022 and merged it with Discovery, Inc. to create Warner Bros. Discovery, divesting itself of its media arm.
On November 18, 2005, SBC Communications, Inc.based in San Antonio, purchased AT&T Corp. for $16 billion. After this purchase, SBC adopted the better-known AT&T name and brand, with the original AT&T Corp. still existing as the long-distance landline subsidiary of the merged company. The current AT&T Inc. claims the original AT&T Corp.'s history (dating to 1877) as its own, but retains SBC's pre-2005 corporate structure and stock price history. As well, all SEC filings before 2005 are under SBC, not AT&T.
AT&T made an attempt in 2011 to purchase T-Mobile for a $39 billion stock and cash offer. The bid was withdrawn after the takeover company was faced with significant regulatory and legal hurdles, along with heavy resistance from the U.S. government. As per the original acquisition agreement, T-Mobile received $3 billion in cash as well as access to $1 billion worth of AT&T-held wireless spectrum.
On October 22, 2016, AT&T announced a deal to buy Time Warner for $108.7 billion in an effort to increase its media holdings. On November 20, 2017, Assistant Attorney General Makan Delrahim filed a lawsuit for the United States Department of Justice Antitrust Division to block the merger with Time Warner, saying it "will harm competition, result in higher bills for consumers and less innovation." On June 12, 2018, U.S. District Court Judge Richard J. Leon ruled that the merger could go forward. The merger closed two days afterwards, with Time Warner becoming a wholly owned subsidiary of AT&T. A day later, the company was renamed WarnerMedia. Among other key assets, the acquisition of WarnerMedia by AT&T included the Warner Bros. film and television studios, U.S. cable/satellite channels such as HBO, Adult Swim, Boomerang, Cartoon Network, CNN, TBS, TNT, TruTV, Turner Classic Movies and a 50% stake in The CW (ViacomCBS, now Paramount Global, owns the other 50%).
On July 13, 2017, it was reported that AT&T would introduce a cloud-based DVR streaming service as part of its effort to create a unified platform across DirecTV and its DirecTV Now streaming service, with U-verse to be added soon. The service, named HBO Max, launched in May 2020.
On September 12, 2017, it was reported that AT&T planned to launch a new cable TV-like service for delivery over-the-top over its own or a competitor's broadband network sometime the following year.
In September 2019, activist investor Elliott Management revealed that it had purchased $3.2 billion of AT&T stock (a 1.2% equity interest), and had pushed for the company to divest assets to improve its share value.
In May 2018, reports emerged that AT&T made 12 monthly payments between January and December 2017 to Essential Consultants, a company set up by President Donald Trump's lawyer Michael Cohen, totaling $600,000. Although initial reports on May 8 mentioned only four monthly payments totaling $200,000, documents obtained by the Washington Post on May 10 confirmed the figure of 12 payments, which had begun three days after the President was sworn into office. AT&T confirmed the report the same day. The report from The Washington Post, as well as additional reporting from Bloomberg, revealed the payments had been made for Cohen to "provide guidance" relating to the attempted $85 billion merger with Time Warner, to gain information on the Trump administration's planned tax reforms, as well as about potential changes to net neutrality policies under the new FCC. However, Chairman of the FCC Ajit Pai denied Cohen ever inquired about net neutrality on AT&T's behalf. A spokesperson for AT&T said that the company had been contacted by the Special Counsel investigation led by Robert Mueller regarding the payments, and had provided all the information requested in November and December 2017.
On January 24, 2017, Slator sued AT&T in the Los Angeles Superior Court, accusing the company of defamation and wrongful termination. Slator had been involved in organizing AT&T's planned $48.5 billion acquisition of DirecTV since 2014, and he claimed that when news headlines speculated that his text messages could prevent the acquisition from going through, he was fired as a "scapegoat" by company executives. He also claimed that the executives had known about the text messages since at least late 2013, and had promised him at the time that he would not be fired for them. The company stood by its decision to terminate Slator.
Late last month, AT&T (T 0.42%), the leading wireless communications carrier in the United States, delivered its results for 2022's fourth quarter. For shareholders, the stock has been a decade-long disappointment. It's down by more than 25% since 2013.
Most people who invest in AT&T stock do so with its dividend in mind, even if total returns can be fun. The company cut its dividend when it spun off its entertainment business. In hindsight, shareholders are probably happy with the cut. It helped AT&T's balance sheet, and investors still get a nearly 6% yield at the current price -- not too shabby.
Consider that AT&T is now spending about $2 billion per quarter on dividend payments, an annual expense of just over $8 billion. AT&T's free cash flow in 2022 was just over $14 billion, giving it a dividend payout ratio of 57%. That's plenty of room to pay the dividend and still have billions of cash leftover to help pay down debt on the balance sheet. The company's long-term debt load of $136 billion is its lowest since 2017. 041b061a72