Jump to content
  • 0

AT&T and Warner Bros. Discovery merger in April 2022


ChristianJS

Question

Hi IG Team,

I would like to ask about the 3 shares of Warner Bros. Discovery that's in my account with average price of zero. I did some research and found that AT&T and Warner Bros. did a merger in April 2022 but I'm just confused as to why I now have 3 shares of Warner Bros. (with book cost of $0 and average price of $0). The 16 shares of AT&T is still in my account as before. 

Link to comment

11 answers to this question

Recommended Posts

  • 0

Hi @ChristianJS

I believe the below screenshot were the terms of the event:

Therefore you should receive 0.241917 shares in WBD for each AT&T share that you own. You still continue to keep your AT&T holdings. Book cost and average price will be zero as you had not paid for the shares. 

https://techcrunch.com/2022/04/11/the-warner-bros-discovery-deal-has-officially-closed/

All the best, 

Anda

 

image.png

Link to comment
  • 0
14 hours ago, AndaIG said:

Hi @ChristianJS

I believe the below screenshot were the terms of the event:

Therefore you should receive 0.241917 shares in WBD for each AT&T share that you own. You still continue to keep your AT&T holdings. Book cost and average price will be zero as you had not paid for the shares. 

https://techcrunch.com/2022/04/11/the-warner-bros-discovery-deal-has-officially-closed/

All the best, 

Anda

 

image.png

Hi Anda,

Thank you for your response. It makes sense that I received 3 shares of WBD as I have 16 shares of AT&T (and still do) but what does the 3 shares of WBD mean as they have zero book cost/average price? Am I right in saying that the 3 shares of WBD in my account has no value since I didn't purchase them? In that case, how do I remove the 3 shares of WBD from my account (since I still have my AT&T shares)?

Link to comment
  • 0
3 hours ago, ChristianJS said:

Hi Anda,

Thank you for your response. It makes sense that I received 3 shares of WBD as I have 16 shares of AT&T (and still do) but what does the 3 shares of WBD mean as they have zero book cost/average price? Am I right in saying that the 3 shares of WBD in my account has no value since I didn't purchase them? In that case, how do I remove the 3 shares of WBD from my account (since I still have my AT&T shares)?

Hi @ChristianJS,

On the system the Corporate action team need to sell and buy stock at the price of 0 to go through. 

You will need to edit your book cost for the P/L to display correctly.

you can find the steps on how to edit your book cost here:
https://www.ig.com/au/help-and-support/investments/share-trading/how-do-i-edit-my-book-cost

I hope that it helps !

All the best - Arvin

Link to comment
  • 0
3 minutes ago, ArvinIG said:

Hi @ChristianJS,

On the system the Corporate action team need to sell and buy stock at the price of 0 to go through. 

You will need to edit your book cost for the P/L to display correctly.

you can find the steps on how to edit your book cost here:
https://www.ig.com/au/help-and-support/investments/share-trading/how-do-i-edit-my-book-cost

I hope that it helps !

All the best - Arvin

Hi Arvin, I followed the above steps and when I set the book cost to zero, it tells me to enter a valid book cost and it is not allowing me to save it.

Link to comment
  • 0
51 minutes ago, ChristianJS said:

Hi Arvin, I followed the above steps and when I set the book cost to zero, it tells me to enter a valid book cost and it is not allowing me to save it.

Hi @ChristianJS,

Apologies for the confusion, you will need to set the book cost to the price you initially paid the stock. If you initially paid USD 100 for the stocks for example, you will need to set the book cost at 100.

Thank you - Arvin

Link to comment
  • 0
Just now, ArvinIG said:

Hi @ChristianJS,

Apologies for the confusion, you will need to set the book cost to the price you initially paid the stock. If you initially paid USD 100 for the stocks for example, you will need to set the book cost at 100.

Thank you - Arvin

Hi Arvin, no worries. However, as mentioned in previous posts by Anda, I did not pay for the shares as they were 'received' due to the merger in April. So in that case, wouldn't the book cost be zero? But it is not letting me set this number when I try to edit it.

Link to comment
  • 0

Hi @ChristianJS

Apologies for the confusion, 

Yes the book cost is correct to reflect as zero as you did not pay for them. However they do have a market value as they are currently trading on exchange. Thus when you do decide to sell them your profit will be 3 x market price at the time i.e. they are not worthless. Market price is $14.22 per share at the moment.  

Let me know if you have any further questions. 

All the best, 

Anda

Link to comment
  • 0
1 minute ago, AndaIG said:

Hi @ChristianJS

Apologies for the confusion, 

Yes the book cost is correct to reflect as zero as you did not pay for them. However they do have a market value as they are currently trading on exchange. Thus when you do decide to sell them your profit will be 3 x market price at the time i.e. they are not worthless. Market price is $14.22 at the moment.  

Let me know if you have any further questions. 

All the best, 

Anda

Thanks Anda,  just to clarify, I have 3 shares of WBD with zero book cost in my account (since I did not pay nor purchase them) - is this equivalent to saying I don't own any WBD shares? 

How could I get rid of the 3 WBD shares in my account since I didn't purchase them at all?

Link to comment
  • 0
1 minute ago, AndaIG said:

Hi @ChristianJS

You own the shares in WBD even though you did not pay for them. You received the shares as a benefit due to your holding in AT&T. If you would like to get rid of the shares you can simply sell them on the platform as you would with any other share. 

All the best, 

Anda

I see, so when the market opens I would be able to sell them even with zero book cost and for $0 profit/loss?

Thank you so much for your prompt response.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,030
    • Total Posts
      95,412
    • Total Members
      43,640
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    garden--of--eden
    Joined 28/09/23 14:16
  • Posts

    • Recently, Bybit shockingly announced the suspension of its services to the UK region due to strict regulatory measures by the region. This action by Bybit could further discourage crypto adoption, which is necessary for developing this industry. Strict regulations have continued to deprive crypto access/adoption to many users for a while. The regulatory bodies normally claim their action is in the interest of their citizens (to protect them from unsuspecting activities that could harm them) while some exchange feel this action is a sinister attack on them so the decision to suspend their service to such region. One question boggled my mind; i) Why can't exchange blend to those regulations? iii) Why are other exchanges surviving in such a region? The crypto industry is still young as such we expect some challenges and differences in opinions but finding a common ground that will ensure its development and growth should be paramount. That is why I feel exchanges and regulatory bodies need to work together for the betterment of this industry. While waiting for that scenario to play out which other exchange will you suggest for the users affected by this decision to use and what are your opinions on this strict regulations
    • hello, just tried IG sinals Intraday and short term and lost £200 ish.. anyone used them ? any help or feedback ?
    • Dow, Nasdaq 100 and CAC40 struggle in early trading Indices are under pressure again as oil prices and bond yields continue to rise. Source: Bloomberg  Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 28 September 2023 11:38 Dow eats into Wednesday’s recovery The index briefly slumped to its lowest level since early June yesterday, heading towards the 33,230 level. A rebound from the lows helped to avoid another weak close but the general bearish move remains firmly in place. More losses target the May lows around 32,700. Buyers will be looking for a move back above 33,827 and the 200-day simple moving average (SMA) to suggest that a low has formed. Intraday movement has been capped by the 50-hour SMA over the past week. Source: ProRealTime Nasdaq 100 bounce fizzles The index managed to eke out a small rally yesterday off the lows, but has struggled to push higher in early trading this morning. This has put the price back above the August low of 14,553, so if this holds buyers may attempt to wrest control and drive the index back towards 15,000. A close back below 14,550 would mark a bearish development, potentially open the way towards the June lows at 14,230. Source: ProRealTime CAC40 stuck below previous support After falling just below the 7100 support zone earlier in the week, the index has managed to avoid any further steep losses for the time being. The March lows at 6900 beckon in the event of a fresh drop, while on the upside 7100 could act as resistance in the short-term now it has been broken as support. A longer-term bullish view would require a close back above 7200. Source: ProRealTime
×
×
  • Create New...
us