June 18, 2021

AT&T agrees with Discovery a merger to create a content giant

Discovery CEO David Zaslav would lead the new firm.

Discovery CEO David Zaslav would lead the new firm.

The American telecommunications giant AT&T announced this Monday an agreement for merge your part of entertainment and media, WarnerMedia, with Discovery Inc., which could create a conglomerate with half a dozen cable channels, the study Warner Bros and other businesses if approved by regulators.

The deal is envisioned as a fully stock transaction, AT&T and Discovery Inc. explained in a joint statement.

A) Yes AT&T will receive $ 43 billion in a combination of cash, debt securities and the retention of part of WanerMedia’s debt; what’s more its shareholders will obtain 71% of the shares of the new company.

For their part, Discovery shareholders will have 29% of the new company.

The boards of directors of AT&T and Discovery have approved this transaction.

The CEO of Discovery, David zaslav, would head the new firm, whose board would be made up of thirteen members: seven initially appointed by AT&T, including its president, and seven by Discovery, including Zaslav.

If approved by regulators, this agreement could mean the creation of a new competitor in the entertainment field in the US, three years after AT & T’s purchase of Time Warner, with which the entertainment giant Communications was made with CNN, HBO, Cartoon Network, TBS, TNT and the Warner Bros. studio.

The new company will bring together one of the largest entertainment libraries with more than 200,000 hours of programming and a hundred brands such as HBO, Warner Bros., Discovery, DC Comics, Cartoon Network, HGTV, Food Network, the Turner Networks, TNT, TBS , Eurosport, Magnolia, TLC and Animal Planet among others, according to the statement.

The transaction is expected to close in mid-2022, pending approval from Discovery shareholders and regulatory authorities.


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