WarnerMedia and Discovery Strike Major Deal that Shakes Up Streaming
martyb writes:
Warnermedia And Discovery Strike Major Deal That Shakes Up Streaming:
After a weekend of build-up, the rumors are true: The AT&T-owned WarnerMedia is teaming up with Discovery, Inc. to form a streaming entertainment super-group.
The Monday morning announcement confirmed that AT&T will receive $43 billion "in a combination of cash, debt securities, and WarnerMedia's retention of certain debt" as part of the deal, with AT&T shareholders claiming a 71 percent stake in the new business while Discovery shareholders will hold the remaining 29 percent. The money and big picture ownership stakes are the only aspects of the deal at this point that can be defined in clear term (and even the announcement notes that some of the numbers may be subject to change).
Practically speaking, though, the merger sees the two interests forming a new standalone company that combines "WarnerMedia's premium entertainment, sports and news assets with Discovery's leading nonfiction and international entertainment and sports businesses." On the Warner side, that obviously includes HBO and its attendant streaming service HBO Max. CNN and Turner Sports also fall under the same umbrella, as do an assortment of popular cable networks including Cinemax, TBS, and TNT. WarnerMedia also owns a 50 percent share of The CW.
Discovery, Inc. is a newer player in the streaming space, with its Discovery+ subscription service having launched in March 2020. The company also has a big investment in the sports world, between the GolfTV streaming service and EuroSport, a collection of Europe-based sports networks that notably holds the broadcast rights for Olympic Games across most of the continent. Discovery has also nurtured a powerful slate of its own popular cable networks, including Animal Planet, Food Network, HGTV, and TLC.
The big question, of course, is how this new phase for both companies will impact their respective streaming options, if they do at all. That's unfortunately not clear yet. Discovery CEO David Zaslav said during a post-announcement press conference that there's been no decision made about how or whether to bundle the streaming services. Streaming is a huge piece of this deal, though, make no mistake.
Read more of this story at SoylentNews.