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AT&T announced Monday It will be rotate WarnerMedia—Including HBO and Warner Bros. — three years after joining a new company Buy AT&T Time Warner has $ 108 billion.
AT&T said he had reached an agreement with media company Discovery to combine the assets of WarnerMedia and Discovery into an “independent global entertainment company.” AT&T would receive $ 43 billion in the stock transaction, “through a combination of cash, debt securities and the retention of certain debts by WarnerMedia.” AT&T shareholders would receive 71 percent of the new media company, while Discovery shareholders would receive another 29 percent.
AT&T expects the full year to complete the combination with spin-off and Discovery. “The transaction is expected to be completed by mid-2022, with the approval of Discovery shareholders and compliance with the usual closing conditions, including the receipt of regulatory approvals,” AT&T said.
AT&T says it will change its focus again broadband.
“For AT&T shareholders, it’s an opportunity to unlock value and be one of the best capitalized broadband companies focused on investment 5G and to meet the high demand for long-term fiber connectivity, “said AT&T CEO John Stankey.” AT&T shareholders will retain the stake in our major communications company, which brings an attractive dividend. They will also get the participation of the new company, a world-leading media leader that can build one of the best streaming platforms in the world. ”
The unnamed WarnerMedia / Discovery company will have more than 100 brands, including “HBO, Warner Bros., Discovery, DC Comics, CNN, Cartoon Network, HGTV, Food Network, Turner Networks, TNT, TBS, Eurosport, Magnolia, TLC, Animal Planet, ID and many more, ”AT&T said.
Monday’s AT&T announcement came two weeks later Verizon said it agreed to sell it Yahoo and AOL have given $ 5 billion to private equity firm Apollo Global Management. The telecommunications giant’s media business stakes have not earned as much as expected, but investments in AT&T media have been much higher than Verizon’s.
Yesterday’s announcement is “acknowledging that putting a lot of active content with a wireless phone company has had little long-term synergy.” It was written by CNBC. “Well, WarnerMedia has become an albatross of AT&T shares, as Verizon and T-Mobile have been outstanding since the deal ended on June 14, 2018.”
The acquisitions of AT&T’s Time Warner and DirecTV were made under Stankey’s predecessor as CEO Randall Stephenson.
AT&T cut about 45,000 jobs media and telecommunications divisions after the purchase of Time Warner. Be AT&T 273,210 employees In mid-2018 it bought Time Warner and immediately had just 228,470 March 31, 2021.
Stephenson had it claim AT&T “would create 7,000 jobs that put in fiber [the] on the ground “in exchange for a large reduction in corporate taxes. AT&T continued to lay off employees, damaging capacity expand the fiber network and maintaining its old copper network. A report commissioned by the California state government found AT&T allowed the copper telephone network to deteriorate as a result of neglect, especially in low-income communities and areas of high competition, despite a 122.6% rise in telephone prices over the past 12 years.
While keeping AT & T in its core telecommunications business, the company said the deal “affects two independent companies – broadband connectivity and the other – to sharpen their investment vision and attract the best base for investors in each company.” With the return of $ 43 billion to AT&T, telecommunications said it will be “one of the best capitalized 5G and fiber broadband companies in the United States.”
WarnerMedia / Discovery will “invest in more original content for streaming services, improve programming options across global pay-TV and global broadcast channels, and provide more opportunities for innovative and consumer video experiences,” the deal announcement said. Stankey said the deal “supports the wonderful growth and international marketing of HBO Max with the global footprint of Discovery and will create efficiency.” [that] it can be reinvested in producing more great content to give consumers what they want. ”
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