NEW YORK (AP) – AT&T will combine its media operations, which include CNN HBO, TNT և TBS, with a $ 43 billion deal with Discovery, which owns the Food Network և HGTV, which owns lifestyle networks.
Faced with the cutting of wires, the intrusion of streaming services, large broadcast media companies have gathered new strength, sought power through mergers.
The deal, announced Monday, will set up a separate news company, with households increasingly abandoning cable satellite TV. Broadcast media are under significant threat from Netflix, Amazon Prime Video, Facebook, TikTok և YouTube.
AT&T will receive $ 43 billion in equity transactions in debt securities, with WarnerMedia maintaining certain debts. AT&T shareholders will own 71% of the new company, while Discovery shareholders will own 29% of the new company.
AT&T pushed the streaming segment through HBO Max, which was a direct competitor to Netflix, Apple, Disney և Comcast. Discovery has launched an independent streaming service called Discover + this year.
The new company will be able to invest more in the original streaming content. It will install nearly 200,000 hours of programming և bring together more than 100 brands under one global portfolio, including DC Comics, Cartoon Network, Eurosport, Magnolia, TLC and Animal Planet.
The deal to drop its media business is a major step forward for AT&T, which struggled to boost the deal to buy Time Warner for $ 85.4 billion in 2018, with the Justice Department trying to block the deal for anti-competitive reasons.
The new company will be led by Discovery President and CEO David Aslav. The deal is expected to close in the middle of next year. It has yet to be approved by Discovery shareholders. AT&T shareholders do not need to vote on the deal.