NEW YORK, Oct. 06, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors of Warner Brothers Discovery, Inc. (“WBD” or the “Company”) (NASDAQ:WBD). Those investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, extension 7980.

The investigation concerns whether WBD and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.

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On May 17, 2021, AT&T, Inc. (“AT&T”) and Discovery, Inc. (“Discovery”) issued a press release announcing a definitive agreement to combine WarnerMedia’s “premier entertainment, sports and news content with leading… to combine Discovery’s non-fiction and international content entertainment and sports businesses to create a premier, standalone global entertainment business” (the “Merger”). On February 4, 2022, a definitive joint proxy statement/prospectus was filed with the Securities and Exchange Commission in connection with the merger. On March 11, 2022, Discovery shareholders voted overwhelmingly to approve the merger, which was subsequently completed on April 8, 2022. On April 11, 2022, the shares of the combined company, WBD, began trading on NASDAQ. Investors later learned through a series of post-merger disclosures that: (i) WarnerMedia’s HBO Max streaming business experienced an unacceptable churn rate that would not make the business “viable” unless reversed; (ii) WarnerMedia over-invested in streaming entertainment content without giving due consideration to ROI; (iii) WarnerMedia had a business model to increase the number of subscribers to its streaming service without regard to cost or profitability; and (iv) WarnerMedia had overstated the number of HBO Max subscribers by as much as 10 million subscribers by including as subscribers AT&T customers who received bundled access to HBO Max but did not subscribe to the service.