Cable Billionaire Malone May Take $280 Million Hit on AT&T-Discovery Deal

  • Stake soared with Archegos turmoil, will be converted for less
  • Veteran investor says he’s creating a legacy for his grandkids

John Malone

Photographer: Scott Eells/Bloomberg

John Malone, the billionaire investor and media executive, may see the value of his Discovery Inc. shares cut by almost $280 million as a result of its merger with AT&T Inc.’s media businesses -- a deal he vigorously supports.

Malone owns 6.19 million Discovery Class B shares, which currently trade at $78 each, making his holding worth about $483 million. But under the deal announced this week, those shares will convert on a one-for-one basis into the stock of the new company, the same ratio as Discovery’s Class A common shares, which trade at around $33 each.