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AT&T-Discovery Deal Is More Evidence Media, Telecom Don’t Mix

May 17, 2021, 1:29 PM

First Verizon. Now AT&T.

In recent weeks, the two telecom giants have both called it quits on what used to be a popular strategy: owning distribution and media assets.

Earlier this month, Verizon Communications Inc. agreed to sell its media division to Apollo Global Management Inc. for $5 billion, a move that will jettison once-dominant online brands like AOL and Yahoo. AT&T Inc. followed on Monday with a plan to spin off its media business and merge it with Discovery Inc.

AT&T shareholders will get 71% of the new company, but the move signals that the 2018 purchase of Time ...