AT&T is spinning off WarnerMedia, combining it with Discovery to create a new streaming...

Shawn Knight

Posts: 13,282   +132
Staff member
Why it matters: With the deal, AT&T is essentially unwinding its mega merger with Time Warner, conceding that it wasn't able to go blow for blow with titans like Netflix and Disney in the streaming video wars. Earlier this year, Verizon did the same by selling off AOL and Yahoo for a fraction of what it initially paid.

The streaming video race is heating up as AT&T has announced plans to spin off its WarnerMedia unit and combine it with Discovery to create a standalone global entertainment company.

Discovery CEO David Zaslav will lead the new company. AT&T will initially appoint seven of the new company’s board members, with Discovery being responsible for the remaining six.

The deal, which is being structured as an all-stock, Reverse Morris Trust transaction, will see AT&T’s shareholders receive 71 percent of the new company and Discovery shareholders getting the remaining 29 percent. Discovery’s current multiple classes of shares will be consolidated into a single class, with one vote per share. AT&T will receive $43 billion in a combination of cash, debt securities and WarnerMedia’s retention of certain debt.

Combined, the new company will have a massive content library featuring more than 100 popular brands, including HBO, Warner Bros., Discovery, Cartoon Network and CNN, just to name a few.

Board members of AT&T and Discovery have approved the deal. Pending customary regulatory approval and closing conditions, the transaction is expected to close in mid-2022.

Image credit madamF

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Neatfeatguy

Posts: 354   +543
Discovery+ and Netflix are the only streaming services I pay for.

Here's hoping there's no odd impact with Discovery+ where they try to force a bunch of other crap down your throat and jack up the price. $5 a month is a good price for a streaming service that has a good assortment of shows the wife and I enjoy watching.
 

brucek

Posts: 811   +1,130
TechSpot Elite
So Discovery's CEO is ending up in control of all of Time Warner? "90 Day Fiance" is a fine show (according to my girlfriend at least), but them eating all of HBO, DC/Justice League movies, and many many more is kind of an upset no?
 

DZillaXx

Posts: 282   +407
With so many streaming services now... Cable Packages are looking good again LOL. IPTV ftw!

Not even close. There is nothing good to watch on cable...

You get 100x better content choices than you get with a cable sub with a few streaming services. Which is why I have no problem paying for them. If it wasn't for sports cable would be dead for most. The commercials alone kill it for me
 

mbrowne5061

Posts: 1,871   +1,092
With so many streaming services now... Cable Packages are looking good again LOL. IPTV ftw!
This one would technically be a consolidation of streaming services: HBO (Go, Now, Max) and Discovery+ into one service.

I just wonder what will happen to people currently subscribed to HBO Max as a part of their AT&T service. I enjoy it as part of my cell plan, but don't think I would shell out for it separately.
 

BobHome

Posts: 106   +45
Not even close. There is nothing good to watch on cable...

You get 100x better content choices than you get with a cable sub with a few streaming services. Which is why I have no problem paying for them. If it wasn't for sports cable would be dead for most. The commercials alone kill it for me
I visited our cable site a few weeks ago when AT&T TV announced their latest price increase. To get the streaming equivalent, our cable wants $163--and that's before the monthly set-top boxes charges and all those 'legal' fees. So, well north of $200 now.
 

BobHome

Posts: 106   +45
Discovery+ and Netflix are the only streaming services I pay for.

Here's hoping there's no odd impact with Discovery+ where they try to force a bunch of other crap down your throat and jack up the price. $5 a month is a good price for a streaming service that has a good assortment of shows the wife and I enjoy watching.
Discovery+ and Netflix are the only streaming services I pay for.

Here's hoping there's no odd impact with Discovery+ where they try to force a bunch of other crap down your throat and jack up the price. $5 a month is a good price for a streaming service that has a good assortment of shows the wife and I enjoy watching.
With HBO Max now in their hands, I don't know. They might possibly 'do a Disney' and offer a bundle for a bargain: Get Discovery+ plus HBO Max plus Warner's movie collection and save a buck! :)
(we don't do sports so Disney's bundle is useless to us)