AT&T signs deal to combine media biz with Discovery
U.S. telecom giant AT&T Inc. has signed a deal to combine its media business, including CNN, with Discovery Inc., the owner of such lifestyle networks as the Food Network and HGTV
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.AT&T will combine its massive media operations that include CNN HBO TNT and TBS in a $43 billion deal with Discovery, the owner of lifestyle networks including the Food Network and HGTV.
Faced with cord-cutting and incursions by streaming services, major broadcast media companies have retrenched and sought strength through mergers.
The deal announced Monday would create a separate media company with households increasingly abandoning cable and satellite TV, looking instead at Netflix Amazon Prime Video, Facebook TikTok and YouTube.
In the all-stock deal, AT&T will receive $43 billion in a combination of cash, debt securities, and WarnerMedia’s retention of certain debt. AT&T shareholders will receive stock representing 71% of the new company and Discovery stockholders will own 29% of the new company. The transaction is considered a
AT&T had pushed into the streaming sector through HBO Max, a direct competitor with Netflix, Apple, Disney and Comcast. Discovery launched a standalone streaming service called Discovery Plus this year.
The deal to give up its media business marks a major shift by AT&T, which fought hard to push a transaction through in 2018 to buy Time Warner for $85.4 billion with the Justice Department trying to block the deal on anti-competitive reasons.
The deal is expected to close by the middle of next year.