AT&T in superior talks to merge WarnerMedia with Discovery, deal anticipated as quickly as tomorrow

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Mixed photos of AT&T CEO John Stankey (L)and john stankey WarnerMedia CEO Jason Kilar.

Reuters

AT&T is in superior talks to merge WarnerMedia with Discovery in a deal that can strengthen the mixed firm towards rival media giants Netflix and Disney, in response to individuals accustomed to the matter.

A deal might be introduced as quickly as tomorrow, stated the individuals, who requested to not be named as a result of the discussions are personal. Talks aren’t ultimate and will nonetheless crumble, stated the individuals.

AT&T and Discovery declined CNBC’s request for remark.

The doubtless construction of the deal will mix Discovery with all of WarnerMedia, which can grow to be a brand new publicly traded firm co-owned by AT&T and Discovery shareholders, the individuals stated.

The precise cut up between the 2 corporations could not be decided. Discovery has a $16 billion market capitalization and a $30 billion enterprise worth. AT&T acquired Time Warner, since renamed to WarnerMedia, for $85 billion in fairness worth in 2018.

Bloomberg Information first reported talks between AT&T and Discovery for his or her content material belongings.