Merger between WarnerMedia and Discovery completed

Now it’s official: AT&T and Discovery have completed the merger between WarnerMedia and Discovery. Eventually, this deal will lead to a streaming service offering ” the most diverse content directory in the world “.

Combine streaming platforms HBO Max and Discovery+

Announced last year and then finalized last March, the merger between the two entertainment giants is valued at $43 billion and will result in a new subsidiary called Warner Bros. Opening. Through it, streaming services HBO Max and Discovery+ are expected to eventually merge and bring together two strong libraries of content with valuable intellectual property, offering a variety of content that took Netflix many years to acquire.

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In addition to Warner Bros. films, HBO Max hosts world-famous series such as Game of Thrones, Euphoria and Legacy. The content offered by Discovery+ is very diverse and combines reports, documentaries and reality shows. Service subscribers will have access to nearly 200,000 hours of programming; Warner Bros. Discovery will become the de facto third largest streaming service in the world after Netflix and Disney+.

The group will also host the new CNN+ service as well as many US channels such as NT, TBS, Food Network, Investigation Discovery, TLC, Discovery, truTV, Travel Channel, MotorTrend, Animal Planet, Science Channel, New Line Cinema, Cartoon. Network, Adult Swim, HGTV and HBO. Initially, Discovery+ and HBO Max are to be offered as a bundle like Disney+, Hulu and ESPN+, but they will be merged later.

With WarnerMedia, Discovery inherited a talented and innovative team and a dynamic, growing global business that is well positioned to lead the ongoing transformation in media and entertainment, direct distribution and consumer technology. The combination of the two companies will solidify WarnerMedia’s established and dominant position in media and streaming. John Stankey, CEO of AT&T, said in a press release.

The TV is open on multiple streaming services.

This merger is intended in part to strengthen HBO and Discovery’s presence in the streaming market. Photograph: Nicolas J. Leclerc/Unsplash

AT&T returns to its historic sector

This is a huge blow for AT&T, which will be able to partially pay off its whopping $151 billion in debt. Having acquired WarnerMedia in 2018, the telecommunications giant now wants to focus on its historic sector: We are at the dawn of a new era of connectivity, and today marks the beginning of a new era for AT&T. With this deal closed, we plan to invest record amounts in our 5G and fiber growth areas, where we have strong momentum, while aiming to be the best broadband company in America. At the same time, we will pay more attention to shareholder returns. We plan to invest in growth, strengthen our balance sheet and reduce our debt, while continuing to pay attractive dividends that place us among the best dividend payers in America. John Stankey explained.

Creation of Warner Bros. Discovery will also bring major changes to the team. While WarnerMedia CEO Jason Kilar recently announced his departure, it will be David Zaslav, leader of the Discovery team, who will take everything under his wing. He has surrounded himself with a management team made up mostly of people he trusts and plans to maintain a direct hierarchical relationship with company managers he does not know.

Today’s announcement marks an exciting milestone not just for Warner Bros. Discovery, but also for our shareholders, our distributors, our advertisers, our creative partners and, above all, consumers around the world. Through our collective assets and diverse business model, Warner Bros. Discovery offers the most diverse and comprehensive content portfolio for film, television and streaming. We believe we can give consumers around the world more choice by encouraging creativity and creating value for shareholders. I can’t wait for the two teams to come together to make Warner Bros. Discover the best place to tell amazing stories “, he stated.

Mega Mergers for Users or Investors?

This new deal follows major mergers in the streaming and entertainment sectors. After acquiring MGM Studios by Amazon and 20th Century Studios by Disney, Microsoft also recently announced the acquisition of Activision Blizzard, a true giant in the video game sector. Thus, the giants continue to strengthen their offer as the market becomes more competitive.

As noted edgeHowever, these mega-mergers seem to be geared more towards investors than consumers: In practice, we are more likely to encounter confusing production ethics, a strange mix of content suggested by algorithms, and even more frustration on the part of consumers in finding what they want to watch. “.

Recall that at the end of 2021, HBO Max and HBO had 73.8 million subscribers worldwide, while Discovery had 22 million.

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