AT&T announced yesterday that it will be spinning off WarnerMedia as part of its planned deal with Discovery Networks. We’ve known about this for quite some time but details are beginning to emerge.
AT&T and Discovery will merge their media properties, and at the same time, the merged entity will spin off from AT&T, much as AT&T did with DIRECTV. Similar to the DIRECTV deal, AT&T shareholders will own 71% of the new company, which will be completely independent.
This move focuses AT&T back on its core business of delivering communications to individuals, homes, and businesses, and away from providing content. When the deal is done, it will close the book on a chapter in AT&T’s history that many have seen as contentious.
What will become of WarnerMedia?
WarnerMedia, which was known prior to AT&T’s acquisition as Time Warner, will probably stay much the same in the short term. However, the new company will be a powerhouse of content. HBO, Discovery, CNN, and many other brands will all be under the same umbrella. It’s hard to know what the impact on the world of entertainment will be. Discovery seems to be having a little trouble finding its footing in the premium streaming space, while HBO Max seems to have conquered. I’m sure the hope is that the new company will continue to offer great value from top to bottom.
AT&T emerges strong
This is excellent news not only for AT&T but for AT&T customers. By refocusing on the things that AT&T has always done well, everyone will benefit. The current bundles, like for example free HBO Max for Unlimited Elite customers, will probably continue and we may even see more of that sort of thing. As AT&T dealers, Signal Group will have even more power to give you the deals you want and the equipment you need.
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