AT&T’s Spinning Off WarnerMedia in Merger With Discovery in $43 Billion Deal

Home Technology AT&T’s Spinning Off WarnerMedia in Merger With Discovery in $43 Billion Deal
AT&T’s Spinning Off WarnerMedia in Merger With Discovery in $43 Billion Deal
Illustration for article titled AT&T's Spinning Off WarnerMedia in Merger With Discovery in $43 Billion Deal
Image: AT&T

In a quick turnaround after rumors of a merger surfaced this weekend, AT&T has announced that it is spinning off WarnerMedia (which includes HBO) and joining forces with Discovery to create a new media company as part of a massive $43 billion merger.

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AT&T says that as part of the new deal, AT&T will get $43 billion in cash, debt securities, and debt retention, with AT&T receiving a 71% stake in the new company and Discovery getting the other 29%. The new media company will be helmed by current Discovery CEO David Zaslav, with other execs from both AT&T and Discovery stepping in to fill out the new company’s board of directors (seven from AT&T, and six from Discovery including Zaslav).

The end goal for AT&T and Discovery is to create a new media powerhouse that combines the existing content and libraries of both companies (which includes content from HBO, Warner Bros., CNN, Food Network, HGTV, DC Comics, TNT, Cartoon Network, and more), while also “accelerating both companies’ plans for leading direct-to-consumer (DTC) streaming services for global consumers.”