AT&T and Discovery to combine media businesses in blockbuster $43 billion deal

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Telecom spinning off CNN, HBO and other other media assets as broadcaster moves to strengthen new streaming service.
AT&T is combining 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.

The deal announced Monday would create a separate media company with households increasingly abandoning cable and satellite TV. Broadcast media is under significant threat from Netflix, Amazon Prime Video, Facebook, TikTok and YouTube. Faced with cord-cutting and incursions by streaming services, major broadcast media companies have retrenched and sought strength through mergers.

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.

AT&T had pushed into the streaming sector through HBO Max, a direct competitor with Netflix, Apple, Disney and Comcast. Discovery…
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