Tuesday, May 18, 2021

AT&T plans to merge its WarnerMedia Unit with Discovery

AT&T (NYSE:T) is spinning off its WarnerMedia unit and merging it with media company Discovery (NYSE:DISCA). In a restructuring move, AT&T is combining WarnerMedia with Discovery to form a new publicly traded media company. The transaction will generate $43 billion for AT&T in cash and debt.

AT&T shareholders will own 71% of the combined company, while Discovery shareholders will receive a 29% stake in the new company.

If all goes as planned, the transaction will close in mid-2022, and Discovery President and CEO David
Zaslav will lead the combined company.

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