Media And Entertainment
After the news of the upcoming merger between Discovery Network and Warner Media, a new name has been assigned to the combined entity: “Warner Bros. Discovery.”The merger would be finalized by next year. The entertainment giant, Warner Bros., has many popular titles and networks such as HBO, DC Comics, and CNN, among many others. AT&T, which owns WarnerMedia, will spin it off to merge it with the Discovery network. Discovery will take over the new merger.
“We believe it will be the best and most exciting place in the world to tell big, important, and impactful stories across any genre – and across any platform: film, television, and streaming,” Discovery CEO David Zaslav said in a statement.AT&T and Discovery expect the merger to wrap up in mid-2022, assuming it clears regulatory hurdles. AT&T shareholders will own 71 percent of the new company, so it’s more like WarnerMedia is being freed from AT&T and picking up Discovery in the future.
WarnerMedia runs HBO Max, which has been fairly successful in selected markets it operates. Recently, Discovery has also launched its streaming service called Discovery Plus. The combined entity would be competing well with the likes of Netflix and Disney Plus. Zaslavalso said that the combined entity wouldspend over $20 billion per year towards new content creation, which is almost comparable to Netflix and exceeding Disney Plus. With this, he also hopes the new streaming giant toreach 400 million homes eventually.