T: Back-of-the-envelope Valuation

I've been reading about the AT&T spin-off of their Warner Media business -- which is set to merge with Discovery.

T owners will get 0.24 shares of the new "Warner Media Group" for each share of T. I believe the new company will be priced based on DISCA - which closed at $27.69 yesterday. If true, then the value of remaining AT&T is this:

	Price	Dividend	Yield
T today	24.55	2.05	8.4%
0.24 DISCA shares	6.65	0.00	0.0%
T - new	17.90	1.11	6.2%

But what if new AT&T traded at the same dividend yield as Verizon, the closest comparison? Verizon has a 4.76% yield today. And not to give too much value to Warner/Discovery - so reducing that value by 20%. By these two somewhat offsetting adjustments, T is worth $28.64 today! A really enticing 16.6% upside! 

	Price	Dividend	Yield
T - new	23.32	1.11	4.8%
DISCA @ 80%	5.32	0.00	0.0%
T today	28.64	2.05	7.2%
Upside	16.6%