Dark Side of the Street (Edition #4)
$T and $DISCA Special Sit, $CEG Update, Insider Buying, and More!
Welcome to the Dark Side of the Street! Here we shed light on the dark corners of the market. If you haven’t already, sign up here for weekly updates or share with your friends and family. If you’re new to special situations, see some of my learning resources on my substack home page to learn more! Feel free to reach out with any feedback.
“Time is the friend of the wonderful business, the enemy of the mediocre.”
-Warren Buffett
Upcoming Special Situations
AT&T (NYSE: T) has decided to spin off WarnerMedia in a mildly complicated transaction where Warner will be spun off and merge with Discovery Inc (NASDAQ: DISCA) to form Warner Bros. Discovery (NASDAQ: WBD). After the transaction is complete AT&T shareholders will own 71% and Discovery will own 29% of WBD. This transaction will split AT&T’s telecommunications business from the media business. Joe Cornell, a Forbes contributor has written a detailed article on the transaction for those wanting to learn more called ‘AT&T To Spin-Merge WarnerMedia With Discovery’.
Recent Insider Buying
Large Micro Cap Purchases
Source: OpenInsider.com
Top News of the Week
“Business Storytelling Through Uncertainty: Mergers And Acquisitions” - By Esther Choy, a contributor to Forbes
“In most of the early reports of mergers and acquisitions, experts consider it a good deal if the the financials, the profitability, the capabilities of the two companies align. But more often than not company culture is overlooked or underestimated as a critical ingredient.”
“Sony to Buy Videogame Maker Bungie in $3.6 Billion Deal” - By Sarah E. Needleman and Will Feuer of WSJ
“Sony’s and Microsoft’s planned acquisitions, which are pending regulatory approval, would give the console makers additional ways to compete against each other by adding more content to their portfolios that they could offer exclusively to customers.”
Micro Cap Letters to Shareholders/Board
LiveWire Ergogenics CEO Issues Letter to Shareholders
Top Micro Cap Movers this Week
Top 10 Gainers
Top 10 Losers
Special Situation Watchlist
Colfax Corp (NYSE: CFX) - Spinoff
No Update
Constellation Energy Corp (CEG) - Spinoff
Constellation began trading in the ‘regular way trading’ this week and has officially been spun off from EXC. On Feb. 2nd, 2022, CEG was added to the NASDAQ 100 Index. The stock currently trades ~$52/share.
Activision Blizzard (NASDAQ: ATVI) - Risk Arbitrage
The spread between the buyout price and ATVI’s current trading price is now ~17%.
*See links for the situation summary from prior editions
See you next week!
- Dark Side of the Street