AT&T announced this morning, it spins its media company WarnerMedia and merges with TV company Discovery, creating a major new player in the media world to compete with companies like Netflix and Disney in charge of streaming content.
The deal brings many well-known names from the TV and film world under one roof. WarnerMedia owns HBO, CNN, Cartoon Network, TBS, TNT and the Warner Bros. movie studio, responsible for major franchises such as Harry Potter and Batman, while Discovery operates cable networks including HGTV, Animal Planet, Food Network and TLC. Both companies also have their own streaming platforms: HBO Max and Discovery Plus.
Both AT&T and Discovery boards have approved the deal, but it has yet to be signed by regulators. The deal is an all-stock transaction in which AT&T will receive $ 43 billion in a combination of cash, debt securities and debt withholding from WarnerMedia. AT&T shareholders will receive a 71 percent share of the new company, while Discovery shareholders will own the remaining 29 percent.