SEC Form 4 · accession 0001209191-18-051260
Warner Bros. Discovery, Inc. · WBD
Statement of changes in beneficial ownership, as filed. Original on EDGAR ↗
Table I — non-derivative securities
| Security | Date | Code | Shares | Price | A/D | Owned after | D/I | Nature of ownership |
|---|---|---|---|---|---|---|---|---|
| Series C Common StockF1 | Sep 13, 2018 | J | 188,100 | — | D | 7,879,498 | D | |
| Series C Common StockF2 | Sep 13, 2018 | J | 21,614 | — | D | 7,857,884 | D | |
| Series C Common StockF3 | Sep 14, 2018 | J | 188,452 | — | D | 7,669,432 | D | |
| Series C Common StockF4 | Sep 14, 2018 | J | 21,655 | — | D | 7,647,777 | D | |
| Series C Common StockF5 | holding | — | — | — | 557,000 | I | By Trust | |
| Series C Common StockF6 | holding | — | — | — | 1,316,424 | I | By Spouse |
Table II — derivative securities
| Security | Conv. / exercise price | Date | Code | Shares | A/D | Exercisable | Expires | Underlying | Underlying shares | Owned after | D/I |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Forward sale contract (obligation to sell)F1,F7,F8 | — | Sep 13, 2018 | J | 1 | D | — | — | Series C Common Stock | 440,000 | 1 | D |
| Forward sale contract (obligation to sell)F2,F9,F10 | — | Sep 13, 2018 | J | 1 | D | — | — | Series C Common Stock | 50,560 | 1 | D |
| Forward sale contract (obligation to sell)F3,F7,F8 | — | Sep 14, 2018 | J | 1 | D | — | — | Series C Common Stock | 220,000 | 0 | D |
| Forward sale contract (obligation to sell)F4,F9,F10 | — | Sep 14, 2018 | J | 1 | D | — | — | Series C Common Stock | 25,280 | 0 | D |
Explanation of responses
- F1On September 13, 2018, the nineteenth component of the amended forward (as defined and described below) matured. The Reporting Person elected to physically settle the amended forward, as further described in the Remarks section. The settlement price for the nineteenth component was above the amended forward cap price; therefore, the Reporting Person delivered 188,100 shares of the Issuer's Series C common stock ("DISCK") to the counterparty (as defined below) and retained 31,900 shares of DISCK.
- F10The 2017 forward is divided into 20 components, each with respect to 25,280 shares of DISCK. The components matured on sequential trading days over the period beginning on August 17, 2018 and ending on September 14, 2018.
- F2On September 13, 2018, the nineteenth component of the 2017 forward (as defined and described below) matured. The Reporting Person elected to physically settle the 2017 forward, as further described in the Remarks section. The settlement price for the nineteenth component was above the 2017 forward cap price; therefore, the Reporting Person delivered 21,614 shares of DISCK to the counterparty and retained 3,666 shares of DISCK.
- F3On September 14, 2018, the twentieth component of the amended forward matured. The Reporting Person elected to physically settle the amended forward, as further described in the Remarks section. The settlement price for the twentieth component was above the amended forward cap price; therefore, the Reporting Person delivered 188,452 shares of DISCK to the counterparty and retained 31,548 shares of DISCK.
- F4On September 14, 2018, the twentieth component of the 2017 forward matured. The Reporting Person elected to physically settle the 2017 forward, as further described in the Remarks section. The settlement price for the twentieth component was above the 2017 forward cap price; therefore, the Reporting Person delivered 21,655 shares of DISCK to the counterparty and retained 3,625 shares of DISCK.
- F5The reporting person is the sole trustee of, and with his spouse, retains a unitrust interest in the trust.
- F6The reporting person disclaims beneficial ownership of the shares owned by his spouse.
- F7On July 20, 2012, the reporting person entered into a long-dated post-paid variable forward sale contract (the "2012 forward") with an unaffiliated counterparty (the "counterparty") relating to a maximum of 2,200,000 shares of DISCK, divided into 20 components. On August 6, 2014, the Issuer completed a 2-for-1 stock split in the form of a share dividend, and as a result, the 2012 forward was automatically adjusted to relate to 4,400,000 shares of DISCK. On August 15, 2017, the reporting person and the counterparty entered into an amendment and restatement to the 2012 forward (the "amended forward") relating to a maximum of 4,400,000 shares of DISCK, divided into 20 components each relating to 220,000 shares (each, the "Number of Shares"). The amended forward floor price and the amended forward cap price were determined based on a reference price for shares of DISCK as of August 15, 2017. The amended forward may be settled on a physical settlement or cash settlement basis.
- F8The amended forward is divided into 20 components, each with respect to 220,000 shares of DISCK. The components matured on sequential trading days over the period beginning on August 17, 2018 and ending on September 14, 2018.
- F9On August 15, 2017, the reporting person entered into a post-paid variable forward sale contract (the "2017 forward") with the counterparty relating to a maximum of 505,600 shares of DISCK, divided into 20 components. Each component relates to 25,280 shares (each, the "Number of Shares"). The forward floor price and the forward cap price were determined based on a reference price for shares of DISCK as of August 15, 2017. The 2017 forward may be settled on a physical settlement or cash settlement basis.
Remarks
The reporting person elected to physically settle the amended forward and the 2017 forward. Therefore, the reporting person received an amount in cash from the counterparty determined pursuant to the terms of the amended forward or the 2017 forward, respectively, and the number of shares delivered by the reporting person on the settlement date for each component of such contract is as follows: (i) if the closing price of DISCK on the maturity date for that component (each, the "settlement price") was less than or equal to the forward floor price, the reporting person delivered the applicable Number of Shares; (ii) if the settlement price was greater than the forward floor price and less than or equal to the forward cap price, the reporting person delivered a number of shares that permitted him to retain the appreciation in the shares above the forward floor price; and (iii) if the settlement price was greater than the forward cap price, the reporting person delivered a number of shares that permitted him to retain the appreciation in the shares up to but not above the forward cap price. The trading symbols for the Issuer's Series A, Series B and Series C common stock are, respectively, DISCA, DISCB and DISCK.