Posted on 05/17/2021 6:52:50 AM PDT by Red Badger
AT&T says it will receive an $43 billion in a combination of cash and debt
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AT&T said Monday the U.S. telecommunication giant has reached a deal to combine its content unit, WarnerMedia, with Discovery, an agreement that would help the major Hollywood studios compete with such rivals as Netflix and Disney.
AT&T says it will receive an $43 billion in a combination of cash, debt and WarnerMedia’s retention of certain debt, according to CNBC.
The deal, if approved by regulators, effectively reverses AT&T’s years-long plan to combine content and distribution in a vertically integrated company.
The deal would create a new business, separate from AT&T, that could be valued at as much as $150 billion, including debt, according to The Financial Times.
Enough mof these giant corporate media mergers. They’re consolidating globalist anti-freedom power.
Agreed, we want more competition not less.
CNN will now be run under the same umbrella as Discovery, HGTV, Food Network and many other popular channels.
Makes sense to separate content creation into a standalone (or not) business.
Makes sense to separate content creation into a standalone (or not) business.
AT&T with the Discovery acquisition will become a totally “woke” entity, as is Discovery.
I see vertical integration as another aspect of monopoly practices, and I note that the classical philosopher of “Capitalism”, Adam Smith, was no fan of monopolies and not merely because the ones in his day were government creations.
Let them drown in debt.
They’re actually spinning off the merger between Warner and discovery into a separate company, making AT&T more like the old AT&T focusing on connectivity rather than content creation. It will also reduce their debt burden.
This is basically an admission that their initial purchase of Warner was a big mistake, which it definitely was. The market is very happy with this move.
Bottom line, many streaming services but limited options to get those services to the end user.
AT&T stock went up on the news.......
Both of these companies have a horrible track record on mergers. AT&T’s purchase of DirectTV and the AOL-TimeWarner merger destroyed more shareholder value than just about any other deals in history.
Investors need to rein in these CEOs and their empire building fantasies.
I mean, it is the strangest, dumbest buy, to take all these Last Century cable channels with no real live streamers -- Discovery+ is a bad joke -- and no real "fit" with HBOMax.
The reason Zucker is staying is that he is probably re-imagining all these cable-cord channels as 24/7 'woke' stations with Maoist programming.
Which is interesting because he's decided to do a face plant rather than leave on top. Which means none of the studios were ready to hire him, and he had to stay to have contact with any spending money for production.
Think about this for a moment -- Zucker starts stuffing these channels with new woke crap and abandons the vault model, he'll have to give it away, which means putting the revenue hurt on still-corded Charter, Comcast, Dish, Verizon, and of course ATT!
Discovery+ is a bad jokeI cancelled my "free" subscription after 3 days
“Both of these companies have a horrible track record on mergers. AT&T’s purchase of DirectTV and the AOL-TimeWarner merger destroyed more shareholder value than just about any other deals in history.”
True, but it seems like AT&T may have learned its lesson. They’re going back to what they were. With a 6% dividend may bot be a bad time to buy some.
3-2-1... to documentaries on gay polar bears and reality TV shows about tranny nuns and gender confused toddlers.
You wouldn't recognize the Discovery lineup; it's "reality TV meets 8th grade video project". Who would record that to watch later or select it from a menu that contains everything and anything else?
Standard oil calls lawyers say about this distribution in a vertically integrated company business.
at $30.00 a share Att might be a good buy now
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