Why Discovery Is a Better Buy Than AT&T After the Blockbuster Merger

The streaming media and telecom worlds were shaken Monday, when AT&T (NYSE: T) announced it would be spinning off its WarnerMedia division and combining it with Discovery (NASDAQ: DISCA) (NASDAQ: DISCK). The new streaming behemoth will have a huge library of 200,000-plus hours of content, from Warner Bros. Studios, HBO and MBO Max, The Turner channels (TNT, TBS, CNN), as well as Discovery's comprehensive portfolio of unscripted content. AT&T's shares were down 2.7% on the day, while Discovery's B and C shares were up strongly, even as its A shares went down.