AP

AT&T, Discovery join media houses as cord-cutting encroaches

May 17, 2021, 6:55 AM | Updated: May 24, 2021, 2:15 pm
FILE - In this Oct. 21, 2014 file photo, people pass an AT&T store in New York's Times Square. ...
FILE - In this Oct. 21, 2014 file photo, people pass an AT&T store in New York's Times Square. AT&T will combine its media operations that include CNN HBO, TNT and TBS in a $43 billion deal with Discovery, the owner of lifestyle networks including the Food Network and HGTV. The deal announced Monday, May 17, 2021, would create a separate media company as households increasingly abandon cable and satellite TV, looking instead at Netflix, Amazon Prime Video, Facebook, TikTok and YouTube. (AP Photo/Richard Drew, File)
(AP Photo/Richard Drew, File)

NEW YORK (AP) — AT&T will combine its massive media operations that include CNN, HBO, TNT and TBS in a $43 billion deal with Discovery, the owner of lifestyle networks including the Food Network and HGTV.

It is a major directional shift for AT&T which squared off with the Justice Department less than three years ago in an antitrust fight when it wanted to acquire Time Warner Inc. That was a fight that AT&T won.

However, a multitude of streaming services continue to encroach on traditional broadcast media companies which have sought strength through mergers. They are also pursuing new avenues into streaming entertainment.

AT&T operates HBO Max and Discovery created its own streaming service.

In the all-stock deal, AT&T will receive $43 billion in a combination of cash, debt securities, and WarnerMedia’s retention of certain debt. AT&T shareholders will receive stock representing 71% of the new company and Discovery stockholders will own 29% of the new company.

The new company will be in direct competition with streaming services assembling a growing arsenal of original media content. Those include Netflix, Amazon, Apple, Disney and Comcast. Discovery launched a standalone streaming service called discovery+ this year.

The new media company will be able to invest more in original streaming content to compete, the companies said. It will house almost 200,000 hours of programming and bring together more than 100 brands under one global portfolio, including: DC Comics, Cartoon Network, Eurosport, Magnolia, TLC and Animal Planet.

Discovery President and CEO David Zaslav will lead the new company. The new company’s board will have 13 members, seven will initially appointed by AT&T, including the chairperson. Discovery will initially appoint six directors, including Zaslav.

The deal is expected to close by the middle of next year. It still needs approval from Discovery shareholders. AT&T stockholders don’t need to vote on the transaction.

_____

AP Business writers Anne D’Ínnocenzio and Michelle Chapman contributed to this report.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team. here.

Today’s Top Stories

AP

a man is pictured playing call of duty...
The Associated Press

FTC sues to block Microsoft-Activision Blizzard $69B merger

The FTC’s complaint points to Microsoft’s previous game acquisitions where Microsoft made some game titles exclusive despite assuring it wouldn't.
1 day ago
Respect for Marriage Act...
MARY CLARE JALONICK Associated Press

Bill protecting same-sex, interracial unions passes House

President Joe Biden is expected to promptly sign the measure, which requires all states to recognize same-sex marriages, a relief for many.
1 day ago
a small boy recieves a COVID-19 vaccine in China...
JOE McDONALD Associated Press

China eases anti-COVID measures following protests

Experts warn, however, that restrictions can’t be lifted completely until at least mid-2023 because millions of elderly people still must be vaccinated.
2 days ago
A memorial is pictured near the scene of the Colorado shooting at Club Q...
COLLEEN SLEVIN Associated Press

Colorado gay club shooting suspect charged with hate crimes

Investigators say Anderson Lee Aldrich entered Club Q, a sanctuary for the LGBTQ community in this mostly conservative city, just before midnight on Nov. 19.
3 days ago
DOHA, QATAR - NOVEMBER 25: A giant flag of IR Iran on the pitch prior to the FIFA World Cup Qatar 2...
ALI ABDUL-HASSAN and ABBY SEWELL Associated Press

US-Iran match reflects a regional rivalry for many Arab fans

The U.S. team’s must-win World Cup match against Iran will be closely watched across the Middle East, where the two nations have been engaged in a cold war for over four decades and where many blame one or both for the region’s woes.
10 days ago
Irene Cara in 'Fame' (Photo courtesy of Mgm/Kobal, Shutterstock)...
MARK KENNEDY, AP Entertainment Writer

‘Fame’ and ‘Flashdance’ singer-actor Irene Cara dies at 63

singer-actress Irene Cara, who starred and sang the title cut from the 1980 hit movie “Fame” and then belted out the era-defining hit “Flashdance ... What a Feeling” from 1983's “Flashdance,” has died. She was 63.
12 days ago

Sponsored Articles

Spicy Homemade Loaded Taters Tots...
Macey's

5 game day snacks for the whole family (with recipes!)

Try these game day snacks to make watching football at home with your family feel like a special occasion. 
Happy joyful smiling casual satisfied woman learning and communicates in sign language online using...
Sorenson

The best tools for Deaf and hard-of-hearing workplace success

Here are some of the best resources to make your workplace work better for Deaf and hard-of-hearing employees.
Team supporters celebrating at a tailgate party...
Macey's

8 Delicious Tailgate Foods That Require Zero Prep Work

In a hurry? These 8 tailgate foods take zero prep work, so you can fuel up and get back to what matters most: getting hyped for your favorite
christmas decorations candles in glass jars with fir on a old wooden table...
Western Nut Company

12 Mason Jar Gift Ideas for the 12 Days of Christmas [with recipes!]

There are so many clever mason jar gift ideas to give something thoughtful to your neighbors or friends. Read our 12 ideas to make your own!
wide shot of Bear Lake with a person on a stand up paddle board...

Pack your bags! Extended stays at Bear Lake await you

Work from here! Read our tips to prepare for your extended stay, whether at Bear Lake or somewhere else nearby.
young boy with hearing aid...
Sorenson

Accommodations for students who are deaf and hard of hearing

These different types of accommodations for students who are deaf and hard of hearing can help them succeed in school.
AT&T, Discovery join media houses as cord-cutting encroaches