Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, has launched an investigation into whether the board members of Discovery, Inc. (NASDAQ: DISCA) breached their fiduciary duties or violated the federal securities laws in connection with the company’s agreement with AT&T Inc. (NYSE: T) to combine WarnerMedia’s entertainment, sports, and news assets with Discovery’s nonfiction and international entertainment and sports businesses to create a standalone global entertainment company.
On May 17, 2021, Discovery announced that it had signed an all-stock Reverse Morris Trust transaction with AT&T. Pursuant to the merger agreement, AT&T would receive $43 billion (subject to adjustment) in a combination of cash, debt securities, and WarnerMedia’s retention of certain debt, and AT&T’s shareholders would receive stock representing 71% of the new company; while Discovery shareholders would own 29% of the new company. The deal is scheduled to close in mid-2022.
Bragar Eagel & Squire is concerned that Discovery’s board of directors oversaw an unfair process and ultimately agreed to an inadequate merger agreement. Accordingly, the firm is investigating all relevant aspects of the deal and is committed to securing the best result possible for Discovery’s stockholders.
If you own shares of Discovery and are concerned about the proposed merger, or you are interested in learning more about the investigation or your legal rights and remedies, please contact Melissa Fortunato or Alexandra Raymond by email or telephone. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. Attorney advertising. Prior results do not guarantee similar outcomes.