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AT&T Is Poised to Part With Media Assets in Deal With Discovery

May 17, 2021, 12:23 AM

AT&T Inc. is preparing to spin off its media business and merge it with Discovery Inc. in a tax-friendly deal, according to people with knowledge of the matter, a surprise reversal for a company that spent $85 billion to acquire the assets less than three years ago.

A deal could be announced as soon as this week, said the people, who asked not to be identified because the information is private. The transaction will be structured as a so-called Reverse Morris Trust, or a merger with another company that’s structured to be tax-free, one of the people said.

The idea ...