AT&T to Combine Media Assets with Discovery to Compete in the Streaming Game
US telecommunication company - AT&T is approaching a deal to combine its media assets, including CNN and HBO, with Discovery - the owner of lifestyle TV networks such as HGTV and TLC.
The deal is to underscore the telecom giant’s recognition of the fact that TV viewership has moved to streaming and if one is to take on the giants like Netflix and Disney - scale is a must. HBO and HBO Max now have 63.9 million global subscribers, compared with over 100 million for Disney+ and 207.6 million for Netflix. In turn, Discovery, whose portfolio includes Animal Planet and the Discovery Channel, reaches 88.3 million homes in the US, while its streaming service - Discovery+ only has 15 million subscribers.
The combination is to create a new company that could be valued at $150 billion, including debt, the Financial Times reported.
According to Bloomberg News, the deal could be announced as early as later this week.
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