Discovery Class B Shares Up 80% in Unusual Movements
Anjali Sundaram | CNBC
Discovery’s easily traded Class B shares rose 80% on Wednesday, showing an increase in volume and a departure from the company’s Class A shares, which is highly unusual.
The class B stock, which often has a volume of less than 10,000 shares per day, had already changed hands about 600,000 times by noon ET, according to FactSet. Meanwhile, class A shares had increased approximately 3% due to a much more modest jump in volume, and class C non-voting shares remained unchanged.
Discovery’s shares have fallen sharply over the past week as Archegos Capital Management was forced to leave its position with the communications firm and under several other names. However, these sell-offs hit both Discovery share classes in a similar fashion, in contrast to Wednesday’s move.
Discovery declined to comment.
According to Discovery’s Investor Relations website, class B shares have 10 votes per share versus one vote per share for class A. Approximately 95% of class B shares are held by media manager John Malone, according to FactSet.
CNBC’s Chris Hayes contributed to this report.