Discovery has completed its acquisition of WarnerMedia from AT&T on Friday. The combined organisation named Warner Bros. Discovery Inc, will start trading on the Nasdaq on Monday, under a new ticker symbol ‘WBD’.
In May last year, the companies announced their plans to merge and become a standalone media organisation. AT&T is an American multinational telecommunications company that includes the acquisition of Warner Media in 2018 and its subsequent network groups such as Adult Swim, Boomerang, TBS, TNT, DC Comics, Turner Classic Movies, and TruTv, among other key assets. While, Discovery, which is backed by John Malone, controls networks like TLC and Animal Planet.
“With the close of this transaction, we expect to invest at record levels in our growth areas of 5G and fiber, where we have strong momentum,” stated John Stankey, AT&T Chief Executive Officer John.
Warner Bros. Discovery’s portfolio includes Discovery Channel, Warner Bros. Entertainment, CNN, HBO, Cartoon Network, the streaming services Discovery+ and HBO Max and franchises like Batman and Harry Potter.
“With our collective assets and diversified business model, Warner Bros. Discovery offers the most differentiated and complete portfolio of content across film, television and streaming. We are confident that we can bring more choice to consumers around the globe, while fostering creativity and creating value for shareholders. I can’t wait for both teams to come together to make Warner Bros. Discovery the best place for impactful storytelling,” said David Zaslav, Warner Bros. Discovery’s Chief Executive Officer.
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In 2021, it was reported that the merged organisation will be worth $130 billion including debt, based on WarnerMedia’s estimated enterprise value of more than $90 billion. AT&T will receive $43 billion in cash, debt securities, and debt retention, with its shareholders receiving stock representing 71% of the new company. The deal is structured as a tax-friendly Reverse Morris Trust.
The new platform is set to compete with other streaming giants like Netflix and Disney+.