AT&T and Discovery Inc. have made it official, unveiling their plan to merge their media and entertainment assets in a deal that will bring together TV channels like CNN, TBS, TNT, HGTV, Food Network and Discovery Channel, the Warner Bros. film studio, and streaming services HBO Max and Discovery+. (THR)
Discovery CEO David Zaslav will run the combined business, according to Monday’s announcement. “Executives from both companies” will be in “key leadership roles” according to a press release. (CNN Business)
Under the terms of the agreement, AT&T said it would receive an aggregate amount of $43 billion in a combination of cash, debt and WarnerMedia’s retention of certain debt. AT&T shareholders would receive stock representing 71 percent of the new company, while Discovery shareholders would own 29 percent. (CNBC)
The new company will be bigger than Netflix or NBCUniversal. Together, WarnerMedia and Discovery generated more than $41 billion in sales last year, with an operating profit topping $10 billion. (NYT)
The transaction is expected to close mid-next year, subject to regulatory and board approvals. (Axios)