AT&T confirms deal to combine its WarnerMedia subsidiary with Discovery Inc in ‘pure play’ $43B deal

Another major telco in the U.S. is making a big move away from being a full player in media services, and specifically content creation. Today AT&T said that it is combining its WarnerMedia division with Discovery Inc.
The deal is being structured as a “Reverse Morris Trust” transaction that will give AT&T $43 billion in a combination of cash, debt securities and WarnerMedia’s retention of certain debt. The deal will see AT&T shareholders receive stock representing 71% of the new company, while Discovery shareholders will have 21%, the companies said in an announcement.
Discovery President and CEO David Zaslav will lead the new, combined company. It’s not clear what role Jason Kilar, the CEO of WarnerMedia currently, will have, but his name is not mentioned in the press release. He is currently the CEO of Warner Media, AT&T CEO John Stankey confirmed in a press conference today..
The deal confirms rumors over the


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