Just days after conducting its Q4 2021 earnings call in which it reported increased revenue for WarnerMedia, AT&T Inc. announced that its board of directors has decided to spin off its holdings in the media company during WarnerMedia’s upcoming merger with Discovery Inc.

In AT&T Chief Executive John Stankey’s statements to investors during an earnings call Jan. 28, he promised more details about the merger in March of 2022, which the telecommunications giant’s board members had previously indicated would occur either as a spin-off — which means shareholders will automatically receive stock in WarnerMedia-Discovery — or as a split, which would give shareholders a choice of shares between AT&T and the new media company.

Noting projected full-year 2022 WarnerMedia revenues in the earnings report of $37 billion to $39 billion, up from a $25.6 billion total in 2021, Stankey publicly confirmed the decision just five days later to pursue the spin-off instead of the split.

“We are confident the spin-off achieves that objective because it’s simple, efficient and results in AT&T shareholders owning shares of both companies, each of which will have the ability to drive better returns in a manner consistent with their respective market opportunities,” he said on Feb. 1.