AT&T Inc. said it would roughly halve its dividend payout and divest its WarnerMedia division through a spinoff that will give shareholders 0.24 share for each AT&T share they own, a move that would complete its retreat from the entertainment business.

The spinoff is part of AT&T’s planned deal to combine WarnerMedia with Discovery Inc., a merger that is expected to close in the second quarter. AT&T plans to use the transaction to refocus its remaining assets on its core telecom operations.