Warner Bros And Discovery To Merge Into One Streaming Giant

AT&T has agreed to combine its WarnerMedia with Discovery, in a bid to create a new streaming giant. The merger was announced on Monday, in a move that would bring HBO, CNN, HGTV, Animal Planet and Food Network as well as the Warner Bros. movie studio under the same company.

The boards of both AT&T and Discovery approved the transaction over the weekend. AT&T shareholders are set to own 71% of the new company, while Discovery shareholders would get 29%. AT&T also would receive $43 billion in cash as well as debt securities.

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The merger is likely the result of TV networks facing competition from online streaming services such as Netflix, and as cable television ratings continue to drop.

AT&T owns CNN, HBO and Warner Bros, after the $108.7bn acquisition of Time Warner in 2018.

“This agreement unites two entertainment leaders with complementary content strengths and positions the new company to be one of the leading global direct-to-consumer streaming platforms,” said AT&T chief executive John Stankey.

The merger still needs to be approved by the FTC, and is expected to close in 2022.

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