The Wall Street Journal

AT&T in talks to combine WarnerMedia assets with Discovery

Published: May 16, 2021 at 4:08 p.m. ET

By

Cara Lombardo,

Dana Cimilluca and

Drew FitzGerald

Comments

Deal would mark major shift in strategy amid streaming wars

Discovery headquarters in Silver Spring, Md.

Associated Press

Email icon
Facebook icon
Twitter icon
Linkedin icon
Flipboard icon

Print icon
Resize icon

AT&T Inc. is in talks to combine a big portfolio of media assets, including CNN, with Discovery Inc., according to people familiar with the matter, a deal that would mark a major strategy shift for the telecom giant as the traditional TV business faces prolonged pressure.

The talks, which cover CNN and other parts of AT&T’s T, +0.09% WarnerMedia division, including the TNT and TBS cable channels, are advanced and an agreement could be reached by Monday, the people said. Should there be a deal, AT&T shareholders would own a big stake in the new entity, some of the people said. The people cautioned that a deal isn’t done yet and the talks could still fall apart. Other details of the potential transaction couldn’t be learned.

A deal between WarnerMedia and Discovery DISCA, +1.19%, whose portfolio includes its namesake network and HGTV, would further consolidate a media business buffeted by cord-cutting and competition from streaming video.

The talks signal a major pullback by AT&T, which placed a massive bet on media with its 2018 acquisition of Time Warner Inc. for around $81 billion. That deal made it the world’s most indebted nonfinancial company.

Bloomberg earlier reported that AT&T was in talks to combine media assets with Discovery.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

Bald eagles are back. And they want to eat your pets.

Police in cities across U.S. brace for a violent summer.

Barron's: Inflation Is Here and Hotter Than It Looks. Why It’s Time to Worry.

The gap between reported price inflation and the experiences of businesses and consumers is a signal to investors that inflation is hotter than it looks. Here’s a look at the Federal Reserve’s big gamble that inflationary pressure will be transitory.