Dallas-based AT&T announced the merger between the company’s mass media and entertainment corporation WarnerMedia Inc. and Discovery Inc. has now been completed.
In a press release issued April 8, AT&T said the combined companies will now be known as Warner Bros. Discovery and, as of April 11, will trade on the Nasdaq under the WBD symbol.
“We are at the dawn of a new age of connectivity, and today marks the beginning of a new era for AT&T,” said John Stankey, AT&T’s chief executive officer, in the release. “In WarnerMedia, Discovery inherits a talented and innovative team and a dynamic growing and global company that is well-positioned to lead the transformation that’s taking place across media and entertainment, direct-to-consumer distribution and technology.”
Warner Bros. Discovery will operate assets including the Discovery Channel, Warner Bros. Entertainment, CNN, HBO, HGTV, Food Network, Animal Planet, TLC, and others.
In the release, David Zaslav, Warner Bros. Discovery’s newly named chief executive officer, said the announcement marks a global milestone for shareholders, distributors, advertisers, and consumers.
“With our collective assets and diversified business model, Warner Bros. Discovery offers the most differentiated and complete portfolio of content across film, television, and streaming,” Zaslav said.
The merger to create Warner Bros. Discovery was announced last May.
By the end of 2021, the move faced controversy when thirty members of Congress issued a letter to the U.S. Department of Justice requesting an investigation into whether the merger raised antitrust concerns and would lead to less diversity in media.
However, by February, The Dallas Express reported the transaction was back on track to be complete by the second quarter of 2022.
AT&T faced a similar situation in 2016 after announcing a deal with then-Time Warner when a lawsuit by the Justice Department delayed the transaction and cost the company millions. Ultimately, AT&T successfully bought Time Warner, and the $100 billion deal created WarnerMedia Inc.
As part of the recent merger, AT&T received $43 billion for WarnerMedia and gave shareholders 71% of Warner Bros. Discovery stock, while Discovery Inc. shareholders own the remainder.
Stankey said in the release the move would strengthen WarnerMedia’s position in both streaming and media while helping AT&T invest and grow in the areas of 5G and fiber.
“At the same time, we’ll sharpen our focus on returns to shareholders,” he said. “We expect to invest for growth, strengthen our balance sheet and reduce our debt.”
Earlier this month, nine WarnerMedia senior executives, including CEO Jason Kilar, announced they would leave the company, according to a report from Reuters.
Zaslav said he and the officials involved look forward to the new company’s future.
“We are confident that we can bring more choice to consumers around the globe while fostering creativity and creating value for shareholders,” he said in the release. “I can’t wait for both teams to come together to make Warner Bros. Discovery the best place for impactful storytelling.”