AT&T and Discovery, Inc have announced that they are forming a new company to take on the likes of Disney and Netflix in the streaming service wars. Rumors of the new company were first reported by Bloomberg on Sunday. As of this morning, those rumors have been confirmed by the main parties involved. The move is a massive about-face for AT&T, which fought tooth and nail to be allowed to buy Time Warner for $85 billion several years ago. Here’s what the deal entails:
- AT&T will form a new company with Discovery, Inc, the latter being the lifestyle and reality TV juggernaut that owns the channels Discover, Food Network, TLC, Animal Planet, Oprah Winfrey Network, HGTV, and over a dozen more.
- The deal will see Discovery merge with AT&T’s media offerings, known as WarnerMedia, which includes the Warner Bros film and television studios, HBO, Cartoon Network, CNN, TNT, and TBS.
- A name for the new company has not been announced yet.
- The new company will have over 200,000 hours of programming and feature more than 100 brands under one roof.
- The new company will be larger than streaming giant Netflix and media giant NBCUniversal.
- AT&T’s shareholders will own 71% of the new company, while Discovery shareholders will own 29% of it.
- The new company would be led by Discovery CEO David Zaslav.
- Projected 2023 revenue of the new company is expected to be $52 billion.
- The final merger is not expected to happen until mid-2022, subject to approval by regulators and Discovery shareholders. AT&T shareholders will not need to approve the deal.