The United States telecommunications giant AT&T announced on Monday the merger of his company WarnerMedia, which owns CNN and HBO, with the Discovery group. The union will give rise to another great streaming player that could compete with the Netflix and Disney + platforms.
AT&T will receive 43,000 million dollars and its shareholders will have 71% of the new company. Discovery shareholders will have 29%. In a joint statement, both companies described the merger as the creation of “one of the biggest global players in streaming”.
The agreement, the statement also explains, combines “WarnerMedia’s premium entertainment, sports and news products, with Discovery’s leadership in international and non-fiction entertainment, as well as its sports businesses, to create a leading global entertainment company. and autonomous “.
AT&T bought Time Warner in 2018 and later rebranded it WarnerMedia, which owns HBO, Warner Bros. studios, and cable channels like CNN. Discovery has channels in more than 220 countries.
The merger gives rise to a competitor to market leaders Netflix and Disney +, which saw subscriber growth during the pandemic.
However, a slowdown in the growth of Disney’s streaming platform between January and March caused some investors to worry and the group’s shares fell last week.