United States telecom giant AT&T announces a deal combining its content unit Warner Media with Discovery, paving the way for one of Hollywood’s biggest studios to compete with rivals like media giants Netflix and Disney.
AT&T said Discovery President and CEO David Zaslav would lead the new company,with a 13 members board, seven initially appointed by AT&T including the chair, and Discovery would appoint six members, including Zaslav.
According to the Financial Times Under the agreement, AT&T will unwind its $85 billion acquisition of Time Warner, which closed just under three years ago and form a new media company with Discovery would create a new business, separate from AT&T,valued at $150 billion, including debt.
Mr. Zaslav pointed out that if the proposal is approved by regulators, the deal effectively reverses AT&T’s years-long plan to combine content and distribution in a vertically integrated company adding that the companies said the deal is expected to close in the middle of 2022.
However, the future of WarnerMedia’s current CEO, Jason Kilar, is uncertain, Stankey said Kilar still holds his title, but it will be up to Zaslav to decide if Kilar still has a job with the new company.