William Gallagher
AT&T is spinning off its remaining WarnerMedia services to create a new streaming service together with Discovery, to compete with Netflix, Apple TV+, and other omnibus streaming services.
As previously rumored, AT&T has announced that it and Discovery, Inc, will create a new standalone streaming media company. It will include from the services AT&T acquired from Time Warner in 2018.
According to CNN, the new and as-yet-untitled service will contain HBO Max, Discovery+, and CNN itself. HBO Max is also reportedly planning to use Discovery's international business to help it expand outside the US.
"This agreement unites two entertainment leaders with complementary content strengths and positions the new company to be one of the leading global direct-to-consumer streaming platforms," said AT&T CEO John Stankey in a statement.
"It will support the fantastic growth and international launch of HBO Max with Discovery's global footprint and create efficiencies which can be re-invested in producing more great content to give consumers what they want," he continued.
The new service will be run by Discovery's CEO David Zaslav, who oversaw the launch of non-fiction streaming utilizing popular channels TLC and Animal Planet. The spinoff is being described as a joint venture, with Zaslav working with "executives from both companies."
However, if the deal gains regulatory approval, it will mean AT&T getting to reduce the amount of debt it has been carrying. "AT&T would receive $43 billion (subject to adjustment) in a combination of cash, debt securities, and WarnerMedia's retention of certain debt," said the companies in a press release.
Shares of both AT&T and Discovery rose on the announcement.
The news follows AT&T's early 2021 revision of its media services. It closed down its previous AT&T TV Now service, and moved subscribers over to its separate AT&T TV platform.
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Christine McKee
AppleInsider Staff
Chip Loder
Malcolm Owen
16 Comments
Wow, I'll sleep better knowing that.
Joking aside, I am retired and I don't have nearly enough time for our current options; Netflix, Disney Plus/Hulu, and Amazon Prime.
How about the ability in something like the Apple TV app to pick a selection from any streaming service à la carte at a good price of something like $15 a month for any ten shows, from anywhere?
As a former AT&T employee I can tell you that there was much disgust and distrust for the former CEO, Randall (don’t you call me Randy) Stephenson. This is the guy that fucked up the attempted acquisition of T-Mobile 2011. He got a slap on the wrist and a temporary reduction of salary from the board. He’s also the one who did the deal to buy Time Warner media in 2016 for $85 billion (completed in 2018), which many analysts thought was a bad idea. Now the new CEO, John Stankey, is spinning off Warner Media after just three years.
But Randall is living it up with his retirement package and golden parachute. Go figure.
Like most I'm really just concerned about what this means....for me. :p
I get HBO Max free through my ATT cell service. We also recently subscribed to Discovery+ (gotta make the wife happy). Maybe they become one service? Here's hoping.
I guess this will soon mean the end of HBO Max being included with my AT&T service.