Discovery (NASDAQ:) and AT&T (NYSE:) announced on Monday they have completed the previously-announced deal that will create Warner Bros. Discovery, an independent global media and entertainment company.

The combined company, a result of Discovery’s merger with AT&T’s Warner Media, is set to begin trading on the Nasdaq stock exchange today under the ticker symbol “WBD.”

“Today’s announcement marks an exciting milestone not just for Warner Bros. Discovery but for our shareholders, our distributors, our advertisers, our creative partners and, most importantly, consumers globally,” said David Zaslav, CEO of Warner Bros.

Under the terms of the deal, AT&T received $40.4 billion in cash and WarnerMedia’s retention of certain debt. AT&T investors received 0.241917 shares of the combined company for each AT&T common share they owned at the close.

Ultimately, shareholders of the telecommunications company received 1.7 billion WBD shares, which accounts for 71% of the combined company’s stock on a fully diluted basis. Discovery shares the rest of WBD.

Following the completion of the deal, Deutsche Bank analyst Bryan Kraft named WBD a new Top Pick in the bank’s media sector coverage. New price targets have been set at $48.00 per share instead of $40.00.

“We view the new Warner Bros. “We view the new Warner Bros. Discovery (WBD), as one of most well-positioned companies in global streaming video entertainment market1 due to its content and IP portfolio combined with the widely known HBO Max brand, which has 92M subscribers. WBD is ranked #1 for scripted general entertainment content, based on the Warner Brothers + HBO library and its current production slates. We also rank #1 for unscripted due to Legacy Discovery’s content from across its lifestyle brand portfolio. We also view CNN as a valuable and differentiating asset for WBD’s global streaming business,” Kraft said in a client note.

Analysts believe WBD will reach 194,000,000 global DTC/streaming subscribers before 2026.

“Given that Netflix (NASDAQ:) is already at 222M subscribers, we believe there could be upside to our WBD forecast,” the analyst added.

David Barden from Bank of America reiterated the Buy rating of T stock due to its superior yield and value. In light of the recent WM spin, the analyst has also decreased the price target to $25.00 per shares from $35.00.

“We believe AT&T’s shares are undervalued. In recent years T’s valuation has reflected an overly complex structure of loosely-related businesses sub-optimally organized as a conglomerate. The complexity was addressed by the divestitures made in the last year, though sometimes it was more complex than others. DTV), headwinds were once again created on May 17, 2021 when AT&T announced the dividend reset to $1.11/share (from $2.08) once the WM spin closed. With the deal now closed, the dividend reset, and the investor base stabilizing, we believe the stage is set for investors to begin focusing on AT&T’s improving fundamentals,” Barden wrote in a memo.

By Senad Karaahmetovic