AT&T, the parent company of Warner Media announced on Monday that they struck a deal with Discovery Inc to merge their Warner Media assets with Discovery Inc to create a new online streaming service which has been valued at $150 billion according to the Financial Times.
The deal will also see CNN become part of Discovery Inc as will HBO Max.
CEO and President of Discovery Inc, David Zaslav who will lead the new company commented on the news saying:
It is super exciting to combine such historic brands, world class journalism and iconic franchises under one roof and unlock so much value and opportunity.
“With a library of cherished IP, dynamite management teams and global expertise in every market in the world, we believe everyone wins…consumers with more diverse choices, talent and storytellers with more resources and compelling pathways to larger audiences, and shareholders with a globally scaled growth company committed to a strong balance sheet that is better positioned to compete with the world’s largest streamers.
“We will build a new chapter together with the creative and talented WarnerMedia team and these incredible assets built on a nearly 100-year legacy of the most wonderful storytelling in the world. That will be our singular mission: to focus on telling the most amazing stories and have a ton of fun doing it.
The partnership between Warner Media and Discovery is a way for the two companies to compete with Netflix and Disney+.
The merger which is due to be concluded in mid 2022 also includes the sale of CNN to Discovery Inc.