AT&T Merges Media Assets With Discovery in $130 Billion Deal (2)

May 17, 2021, 2:40 PM

AT&T Inc. agreed to spin off its media operations in a deal with Discovery Inc. that will create a new entertainment company, merging assets ranging from CNN and HBO to HGTV and the Food Network.

The transaction values the combined entity at about $130 billion including debt, based on WarnerMedia’s estimated enterprise value of more than $90 billion.

AT&T will receive $43 billion in cash, debt securities and debt retention, with its shareholders getting stock representing 71% of the new company, the companies said in a statement Monday. The deal is structured as a tax-advantaged Reverse Morris Trust.

Discovery Chief ...

To read the full article log in.

Learn more about a Bloomberg Law subscription.