AT&T signs deal to combine media empire with Discovery
Faced with strong competition from streaming services, major broadcast media companies have sought strength through mergers.
AT&T will combine its massive media operations that include CNN, HBO, TNT and TBS in a 43 billion dollar deal with Discovery, the owner of lifestyle networks including the Food Network and HGTV.
Faced with strong competition from streaming services, major broadcast media companies have sought strength through mergers.
The deal would create a separate media company with households increasingly abandoning cable and satellite TV, looking instead at Netflix, Amazon Prime Video, Facebook, TikTok and YouTube.
AT&T had pushed into the streaming sector through HBO Max, a direct competitor with Netflix, Apple, Disney and Comcast. Discovery launched a standalone streaming service called Discovery Plus this year.
The deal to give up its media business marks a major shift by AT&T, which fought hard to push a transaction through in 2018 to buy Time Warner for 85.4 billion dollars with the Justice Department trying to block the deal on anti-competitive reasons.
The deal is expected to close by the middle of next year.
