WarnerMedia will merge with Discovery and work together to fight the increasingly powerful Netflix and Disney+

DALLAS, TEXAS-MARCH 13: The logo of AT&T outside of AT&T corporate headquarters on March 13, 2020 in Dallas, Texas. AT&T is allowing employees to work remotely from home if they have the ability to do so, as a safety measure due to COVID-19. (Photo by Ronald Martinez/Getty Images)

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There have been a lot of actions in the media industry recently,There is a biography The news that AT&T will acquire Discovery wasconfirmUp. AT&T announced that their WarnerMedia WarnerMedia will merge with Discovery, involving an investment of 43 billion U.S. dollars. The two will establish new companies. AT&T and Discoveryc will hold shares at a ratio of 71:29, respectively, to integrate the Warner Film Division, HBO Max, and Discovery+ streaming services in an attempt to fight Netflix and Disney+ with a more attractive combination.

During the merger process, AT&T will receive $43 billion in cash, debt and other assets. Discovery CEO David Zaslav will assume a leadership role in the new company, while AT&T and Discovery will each appoint executives to the new company‚Äôs board of directors, each accounting for 7:6. AT&T CEO John Stankey said that this merger will strengthen their position in the entertainment industry, and it is expected that the new company will become one of the furniture leaders in the global D2C (direct-to-consumer) streaming platform industry. The press release mentions that the merger of the two companies will bring about “US$3 billion in cost synergies,” and it also aims to generate US$52 billion in revenue by 2023.

After the establishment of the new company, AT&T stated that it will return to the industry and focus on investment in 5G and optical fiber to meet real and long-term networking needs.

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