AT&T and Discovery are joining forces. AT&T operates CNN, HBO, TNT, and TBS, while Discovery operates lifestyle networks including Food Network and HGTV. It’s all due to cord cutting.
It’s a massive, $43 billion deal showcasing a significant shift for AT&T. The company won a battle with the Justice Department a few years ago over its acquisition of Time Warner Inc.
The move shows how streaming services are taking over the television marketplace- with AT&T receiving $43 billion in a combination of cash, debt securities, and WarnerMedia’s retention of certain debt, according to the AP.
AT&T shareholders will receive stock representing 71% of the new company and Discovery stockholders will own 29% of the new company.
The expectation is that the new company will be able to invest more money in original streaming content to compete with those like Netflix, Amazon, Disney, and Comcast.
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