Under the agreement, AT&T said it would receive an aggregate amount of $43 billion in a combination of cash, debt and WarnerMedia’s retention of certain debt.
Telecom giant AT&T announced Monday a deal to combine its content unit WarnerMedia with Discovery, potentially enabling one of Hollywood’s biggest studios to compete with media giants Netflix and Disney.
Under the agreement, AT&T will unwind its $85 billion acquisition of Time Warner, which closed three years ago and form a new media company with Discovery. The deal would create a new business, separate from AT&T, that could be valued at as much as $150 billion, according to The Financial Times.
AT&T said it would receive an aggregate amount of $43 billion in a combination of cash, debt and WarnerMedia’s retention of certain debt. AT&T shareholders would receive stock representing 71% of the new company, while Discovery shareholders would own 29%, it added.
