AT&T combining HBO, CNN, and more with Discovery to create 'formidable' rival to Netflix, Disney
Make way for WarnerDiscovery.
AT&T on Monday announced it has reached a deal to spin off WarnerMedia and combine it with Discovery, creating a new standalone company, CNN reports. Discovery CEO David Zaslav will lead the new company, which The New York Times writes would be a "media juggernaut" that would be bigger than both Netflix and NBCUniversal, though not quite as big as Disney.
The $43 billion deal, CNN writes, would "combine two treasure troves of content," including the streaming services HBO Max and Discovery+. WarnerMedia owns HBO, CNN, TNT, TBS, and Warner Bros. among other assets, while Discovery's brands include HGTV, Food Network, and Animal Planet.
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The combined company "would be a formidable competitor to" Netflix and Disney as the streaming wars continue to heat up, Bloomberg writes. The company is planning to spend about $20 billion on content, more than Netflix, Axios reports.
This announcement was also a "significant about-face" on the part of AT&T, which acquired Time Warner for over $85 billion in 2018, the Times writes.
AT&T CEO John Stankey said Monday the move "positions the new company to be one of the leading global direct-to-consumer streaming platforms." The deal is subject to regulatory approval, but the companies say they expect it to close in the middle of 2022.
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Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
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