AT&T signs agreement to combine media business with Discovery – fr

AT&T signs agreement to combine media business with Discovery – fr

AT&T will combine its massive media operations that include CNN, HBO, TNT and TBS in a US $ 43 billion deal with Discovery, the owner of lifestyle networks including Food Network and HGTV.
In the face of cord cuts and incursions from streaming services, major broadcast media companies have folded and sought to strengthen themselves through mergers.

The deal announced on Monday would create a separate media company, with households increasingly moving away from cable and satellite TV, turning to Netflix, Amazon Prime Video, Facebook, TikTok and YouTube instead.

As part of the all-equity transaction, AT&T will receive US $ 43 billion in cash, debt securities and certain debt retention from WarnerMedia. AT&T shareholders will receive shares representing 71% of the new company and Discovery shareholders will own 29% of the new company.

AT&T had entered the streaming business through HBO Max, a direct competitor of Netflix, Apple, Disney and Comcast. Discovery this year launched a standalone streaming service called Discovery Plus.

Agreement to abandon media activity marks a major shift from AT&T, which fought hard to complete a deal in 2018 to buy Time Warner for US $ 85.4 billion. , with the Justice Department attempting to block the deal on anti-competitive grounds.

The deal is expected to be concluded by the middle of next year.


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