IRS OKs WarnerMedia/Discovery as Tax-Free for AT&T Shareholders

AT&T got a “favorable" private letter ruling Tuesday from the IRS that AT&T's simultaneous spinoff of WarnerMedia and joining it with Discovery will be tax-free for AT&T shareholders for U.S. federal tax purposes, said an 8-K filing Wednesday at the SEC. AT&T previously submitted a request to the IRS for the ruling, as “contemplated” by the May 17 merger agreement (see 2105170034), it said.