AT&T announced this morning, it will spin off its media business, WarnerMedia, and merge it with the television company Discovery, creating a significant new player in the media world to compete with companies like Netflix and Disney that lead content streaming.
The store brings a lot of familiar names in the world of television and film under one roof. WarnerMedia owns HBO, CNN, Cartoon Network, TBS, TNT and Warner Bros. a film studio responsible for huge franchising activities such as Harry Potter and Batman, while Discovery operates cable networks such as 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 governments have approved the agreement, but regulators still need to sign it. The deal is an entire equity transaction that will bring AT&T $ 43 billion in a combination of cash, debt securities and WarnerMedia debt preservation. AT&T shareholders will receive a 71 percent stake in the new company, while Discovery shareholders will own the remaining 29 percent.