AT&T Inc, the owner of HBO and
Warner Bros studios, and cable and streaming network Discovery Inc, the owner
of lifestyle TV networks such as HGTV and TLC, will combine their media assets,
the US telecoms giant said on Monday.
The proposed deal would put
together one of Hollywood's most powerful studios, home to the Harry Potter and
Batman franchises, with Discovery's stable of unscripted home, cooking and
nature and science shows.
The deal also marks the unwinding
of AT&T's $108.7 billion acquisition of US media conglomerate Time Warner
in 2018, and underscores its recognition that TV viewership has moved to
streaming, where scale is required to take on the likes of Netflix Inc and Walt
Disney Co.
Under the terms, AT&T would
receive $43 billion in a combination of cash, debt securities, and
WarnerMedia's retention of certain debt. AT&T's shareholders would receive
stock representing 71 percent of the new company, while Discovery shareholders
would own 29 percent of the new company.
With the acquisition of Time
Warner, AT&T sought to create a media and telecoms powerhouse combining
content and distribution.
Yet this proved a costly strategy
as it simultaneously sought to expand next generation wireless services, most
recently borrowing $14 billion to buy more wireless spectrum.
Read more Business stories
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AT&T Inc, the owner of HBO and
Warner Bros studios, and cable and streaming network
Discovery Inc, the owner
of lifestyle TV networks such as HGTV and TLC, will combine their media assets,
the US telecoms giant said on Monday.
The proposed deal would put
together one of Hollywood's most powerful studios, home to the Harry Potter and
Batman franchises, with Discovery's stable of unscripted home, cooking and
nature and science shows.
The deal also marks the unwinding
of AT&T's $108.7 billion acquisition of US media conglomerate Time Warner
in 2018, and underscores its recognition that TV viewership has moved to
streaming, where scale is required to take on the likes of Netflix Inc and Walt
Disney Co.
Under the terms, AT&T would
receive $43 billion in a combination of cash, debt securities, and
WarnerMedia's retention of certain debt. AT&T's shareholders would receive
stock representing 71 percent of the new company, while Discovery shareholders
would own 29 percent of the new company.
With the acquisition of Time
Warner, AT&T sought to create a media and telecoms powerhouse combining
content and distribution.
Yet this proved a costly strategy
as it simultaneously sought to expand next generation wireless services, most
recently borrowing $14 billion to buy more wireless spectrum.
Read more
Business stories
