AT&TOn Tuesday, WarnerMedia announced that it would spin-off WarnerMedia as part of a $43 billion deal to merge its media assets with Discovery.

Shares of Warner Bros. will be distributed by the U.S. telecoms company. Discovery, a 1.00 per share dividend instead of 2.00 per share

AT&T shareholders will own 71% of the new Warner Bros. Discovery Company will get 0.24 shares from Warner Bros. Discovery for each AT&T share they own.

“Rather than try to account for market volatility in the near-term and decide where to apportion value in the process of doing an exchange of shares, the spin-off distribution will let the market do what markets do best,” AT&T CEO John Stankey said in a prepared statement.

“We believe both equities are likely to be valued soon on their solid fundamentals as well as the appealing prospects that they offer.”

AT&T anticipates spending about $20 billion in capex this year to invest more heavily into fiber to the home broadband internet services and expanding its 5G wireless footprint.

Warner Bros Discovery will play catch-up to Netflix’s larger streaming video service, even though WarnerMedia’s HBO Max was growing faster in the United States during the fourth quarter. It ended 2017 with 74,000,000 subscribers.

The combination is expected to be completed in the second quarter. This is just like Netflix showing signs of maturation.

This is a developing story. Keep checking back for more updates.