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AT&T to spin off WarnerMedia to merge with Discovery


BenG
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Pop-a-911-ster 35,645

AT&T has agreed to combine its WarnerMedia business with Discovery, creating a new business. AT&T will receive $43 billion and its shareholders will own 71% of the new company; Discovery's shareholders will hold the remaining 29%.

WarnerMedia owns CNN, HBO and WarnerBros, which includes the Harry Potter and Batman franchises. Discovery's portfolio mainly entails home, cooking, nature and science shows, including Animal Planet and the Discovery Channel.

The new company will help AT&T and Discovery better compete in the streaming war by significantly bulking up the content. HBO and HBO Max currently have 64 million subscribers worldwide; Discovery+ has 15 million subscribers. For comparison, Netflix and Disney+ have more than 200 million and 100 million subscribers, respectively.

https://www.cnbc.com/2021/05/17/att-to-combine-warnermedia-and-discovery-assets-to-create-a-new-standalone-company.html

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I thought AT&T was in for big anti-trust concerns when it acquired WarnerMedia a couple years ago. And now they wanna acquire Discovery? The acquisitions over the past few years have been so questionable in general, maybe they should focus on creating captivating new IP rather than just swallowing each other up. But then again AT&T is just looking to increase its stock price with the spin off. 

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Pop-a-911-ster 35,645
17 minutes ago, justhislife said:

I thought AT&T was in for big anti-trust concerns when it acquired WarnerMedia a couple years ago. And now they wanna acquire Discovery? The acquisitions over the past few years have been so questionable in general, maybe they should focus on creating captivating new IP rather than just swallowing each other up. But then again AT&T is just looking to increase its stock price with the spin off. 

They're not acquiring Discovery though, technically. Just working together.

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