AT&T’s WarnerMedia has closed its deal to merge with Discovery Inc. Closing an agreement worth 43 billion, the two companies merged into the new WarnerBros.Discovery, announced on Friday, April 8, 2022. The film company already owns CNN, Turner, HBO Max’s streaming service, and the recently acquired Discovery. The merge happened in the hopes that it will put them in a competitive placement amount the streaming giants such as Netflix and Disney+. WarnerMedia will also acquire U.S. sports rights, including the NBA, MLB, and March Madness, with Discovery international sports Eurosport.
AT&T’s shareholders received a 71% increase in the new company. While the shareholders of Discovery own 29% of the new company. The company combined is now worth an estimated 130 billion. John Stankey, CEO of AT&T thanked his colleagues in a memo on Friday. “You are to be congratulated and commended. The road wasn’t easy or clear.”
Warner Bros. Discovery CEO Zaslav said in a statement after the merger. “Today’s announcement marks an exciting milestone not just for Warner Bros. Discovery but for our shareholders, our distributors, our advertisers, our creative partners, and, most importantly, consumers globally.”
“With our collective assets and diversified business model, Warner Bros. Discovery offers the most differentiated and complete portfolio of content across film, television, and streaming. We are confident that we can bring more choice to consumers around the globe while fostering creativity and creating value for shareholders. I can’t wait for both teams to come together to make Warner Bros. Discovery the best place for impactful storytelling,” said David Zaslav in his statement.