1. AT&T Sells WarnerMedia To Discovery for $43B
Carrier giant AT&T and television company Discovery Inc. came together in May with a definitive agreement to combine WarnerMedia’s entertainment, sports and news assets with Discovery’s nonfiction and international entertainment and sports businesses to create a standalone global entertainment company.
AT&T acquired its WarnerMedia business, which came from its blockbuster Time Warner buy, in 2018 for $85.4 billion. However, the company struggled to balance the needs of its core connectivity business with its plans for growing its content side of the house. As such, AT&T CEO John Stankey in May said AT&T believed it was “time to unleash the media assets” of WarnerMedia to Discovery. Via the terms of the deal, AT&T is receiving $43 billion in a combination of cash, debt securities, and WarnerMedia’s retention of certain debt, according to the companies.
The new deal between WarnerMedia and Discovery will form one of the largest global streaming players on the market. Discovery’s President and CEO David Zaslav will lead the newly formed company alongside executives from both companies, who are taking on leadership roles within the new company, AT&T and Discovery said.