NEW YORK, May 18, 2021 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Discovery Inc. ("Discovery" or the "Company") (NASDAQ: DISCA, DISCB, DISCK) in connection with the Company's agreement with AT&T Inc. ("AT&T") (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. Under the terms of the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, AT&T would receive $43 billion (subject to adjustment) in a combination of cash, debt securities, and WarnerMedia's retention of certain debt. AT&T's shareholders will receive stock representing 71% of the new company with Discovery shareholders owning 29% of the new company.
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WeissLaw LLP is investigating whether Discovery's board acted in the best interest of Discovery's public shareholders in agreeing to the proposed transaction, whether the proposed combination's equity split is fair to Discovery's shareholders, and whether all information regarding the process undertaken by the board and the valuation of the transaction will be fully and fairly disclosed to Discovery's public shareholders.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at [email protected]