Discovery and AT&T have completed the process of merging Discovery with Warner Media, AT&T’s content production arm. The completion of the process was announced on Friday and the merger of two rival entertainment groups led to the birth of Warner Bros. Discovery, a new giant in streamingIn a business worth 43 billion dollars (40 billion euros).
In a statement, Warner Bros. Discovery says it has a “more differentiated and complete” portfolio of audiovisual and entertainment content, including brands such as HBO, CNN, DC Comics and Eurosport. new giant of streaming Will compete directly with platforms like Netflix or Disney.
The companies that have now merged have projected revenues of US$52 billion (approximately €48 billion) for 2023, profits of US$14 billion (about €13 billion) and costs on the order of three billion dollars (about €2.8 billion). Estimating savings. Euro) per year.
Warner Bros. Discovery will be led by David Zaslav. For a manager who spent 15 years at the helm of Discovery, this business reaffirms the trend of concentration in the sector and is relevant to shareholders, distributors, advertisers, creative partners and consumers.
“This is an exciting milestone not only for Warner Bros. Discovery, but also for our shareholders, distributors, advertisers, creative partners and most importantly, consumers,” Zaslav said in the statement. As for the new company CEO, “Warner Bros. Discovery offers the most distinct and complete portfolio of content in movies, television and. streaming,
“We believe we can provide consumers around the world with more choices while encouraging creativity and creating value for shareholders. I can’t wait for the two teams to come together to make Warner Bros. the best place to be.” can. impressive stories”, he argues.
The completion of the merger between the two audiovisual giants marked the end of a process that began in May 2021. Warner Brothers. Discovery should begin trading on the Nasdaq index on the New York Stock Exchange (aka Wall Street) on April 11 with the code “WBD.”
As for AT&T, with the creation of this new company, WarnerMedia leaves the North American telecommunications group. Acquired in 2018 for US$85 billion (about €78 billion), the spin-off from AT&T will provide the telecommunications group with more liquidity to invest in other sectors.
“We are ushering in a new era of connectivity and a new era for AT&T,” AT&T CEO John Stankey was also quoted in the statement.
For Stankey, the completion of the merger opens the door to “record levels” of investment in growth areas such as 5G or fiber optics. “This is where we have strong speeds as we work to become America’s best broadband company,” he says.
“At the same time, we will intensify our focus on shareholder returns. We look forward to investing in growth, strengthening our balance sheet and reducing debt, while continuing to pay an attractive dividend that gives us top dividends.” paying securities in the United States,” he says.
According to the statement, under the terms of the merger agreement, AT&T received $40.4 billion (€37.1 billion) in cash and collateral for some of WarnerMedia’s loans. In addition, AT&T shareholders received from telecommunications 1.7 billion titles from Warner Bros. Discovery, which corresponds to 71% of the new company. The remaining securities of WB are in the hands of shareholders of Discovery. In addition, AT&T shareholders have so far continued to hold the same number of shares as AT&T prior to the full merger.