AT&T Plans for Standalone Media Group to Shift Focus to Telecom

 AT&T Inc. (NYSE:T) and Discovery, Inc. (NASDAQ: DISCA, DISCB, DISCK) Monday announced a definitive agreement to combine WarnerMedia's premium entertainment, sports and news assets with Discovery's nonfiction and international entertainment and sports businesses to create a standalone global entertainment company.

Under the terms of the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, AT&T would receive $43 billion (subject to adjustment) in a combination of cash, debt securities, and WarnerMedia's retention of certain debt. AT&T's shareholders would receive stock representing 71 percent of the new company; Discovery shareholders would own 29 percent of the new entity. The Boards of Directors of both AT&T and Discovery have approved the transaction. 

John Stankey, AT&T CEO said, "For AT&T shareholders, this is an opportunity to unlock value and be one of the best capitalized broadband companies, focused on investing in 5G and ready to meet substantial, long-term demand for connectivity." Continue Reading