The American telecoms giant AT&T announced the merger of its subsidiary, Warner Media, which owns the two TV stations, CNN and HBO, with the “Discovery” media group, the owner of the “Eurosport” network. And others.
AT&T and Discovery said in a joint statement issued yesterday that the first will receive about $ 43 billion, and its shareholders will receive 71 percent of the entity emerging from the merger, while Discovery’s owners will own 29 percent of the new group. .
This operation, whose results are expected to appear in the middle of 2022, comes three years after AT&T acquired Time Warner – the former name of Warner Media – for $ 85 billion.
The deal at the time included the acquisition of “AT&T” the huge productions “Harry Potter” and “Batman”.
The announcement on Monday of the merger of the two groups comes at a time when major streaming platforms, such as “Netflix”, “Disney Plus”, “Amazon Prime Video” and “Apple TV” are increasingly dominating the broadcast media scene in the United States and even in The world, according to “Monte Carlo”.
Faced with this new, ad-free, subscription-based economic model, many groups felt the need to boost their savings to maintain their position in the highly competitive US entertainment sector.
With this in mind, AT&T launched its “HPO Max” streaming platform in 2020, while Discovery launched its “Discovery Plus” platform earlier this year.
The two groups confirmed yesterday, Monday, that “the new company will be able to invest in more original content for live broadcast services, improve programming options on its pay TV channels (…) and provide more innovative options and experiences in the field of video for viewers and consumers.”
At the end of 2020, the number of subscribers to “HBO Max” reached 61 million, while the number of subscribers to “Netflix” reached 204 million, and in the “Disney” platforms (“Disney Plus”, “Hulu” and “ESPN”). 146 million.
It is expected that the revenues of the new company will reach about 52 billion dollars by 2023.
The stock market witnessed a sharp increase in the prices of the shares of the two merging groups in the pre-opening trades, as AT&T’s share price rose by 4.5 percent, while Discovery’s share price rose by 17 percent.