Warner: AT&T confirmed on Monday (17) the merger of its WarnerMedia brand with Discovery, to form a new independent company. The deal, still subject to regulatory approval, hovers around US $ 150 billion, equivalent to almost R $ 800 billion at the quotation of the day.
The agreement will bring together two entertainment powers, with one of the objectives of strengthening the presence of both in streaming. The new company, which will have 71% of the shares destined to AT&T and 29% belonging to the partner, will be led by Discovery CEO David Zaslav, and should start operating in mid-2022.
With the operation, which will form the second largest media company in the United States, second only to The Walt Disney Company, it is expected that revenues of US $ 52 billion will be generated in 2023. Last year, they generated US $ 41 billions together, showing operating profit of $ 10 billion.
The merger between Warner and Discovery will create a very diverse content catalog. On the side of the first, there are the Warner Bros studios and the channels HBO, TNT, TBS and CNN, among others, while on the second are brands such as Discovery, Discovery Kids, Food Network and TCL.
New streaming giant
A new streaming platform with global reach will emerge after the agreement between AT&T and Discovery. Initially, the service will bring together 44 million current HBO Max subscribers and 15 million Discovery + customers.
To compete with Netflix and Disney +, which currently lead the segment (208 million and 100 million subscribers, respectively), the new streaming will have almost 200,000 hours of varied programming, according to the telecommunications giant.
The company also confirmed that it will invest in the production of more original content, benefiting both streaming and TV channels that are part of the new media company.