(Reuters) – Shares of Warner Bros Discovery (NASDAQ:) Inc rose on Monday, the first trading day of the media and streaming firm formed from the $43 billion merger of Discovery Inc and assets of AT&T Inc (NYSE:).

Warner Bros Discovery shares were up 2.3% at $24.99, while AT&T stock climbed 2.1% to $18.65 in premarket trade.

AT&T and Discovery set out to create a standalone media business in May last year and the deal was closed on Friday, with the new business housing channels including HBO, CNN and the Discovery Channel as well as franchises like “Batman” and “Harry Potter”.

The streaming service provider, which owns Discovery+ and HBO Max, is now facing stiff competition from Walt (NASDAQ:) Disney Co’s Disney+ during a cooling period for user growth.

MoffettNathanson analysts stated, “The long-standing question about whether streaming makes sense as a business is made more complex if there’s doubt around the TAM (Total Addressable market) or the amount of steady-state profit.”

They also mentioned that rising interest rates were a problem.