CollinsAccording to Bloomberg, AT&T and Discovery are in talks to merge AT&T’s media business with Discovery’s reality-TV dynasty to form a massive new entertainment entity.
According to the Los Angeles Times, “many Warner Media executives were stunned by the news.” Neither company confirmed the deal, but if it goes through, the combined company could be a significant competitor for streaming companies like Netflix and Disney.
However, as Bloomberg points out, AT&T only recently added some major entertainment brands to its portfolio when it paid $85 billion for Time Warner in a deal that was completed in 2018.
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And, while AT&T’s streaming service HBO Max has done relatively well since its somewhat shaky launch last May, it is still not as robust as older competitors like Netflix. Discovery launched its own streaming platform, Discovery Plus, in January, with shows spun off from its Discovery Channel catalog, including a new House Hunters series and new Fixer Upper series from the creators.
AT&T’s WarnerMedia division owns CNN, HBO, Cartoon Network, TBS, TNT, and the Warner Bros. film studio.
Discovery’s cable networks include HGTV, Food Network, and TLC. However, as more people abandon traditional cable TV in favor of streaming options, most media companies are scrambling to find new ways to reach their target audiences.
According to Bloomberg, a deal could be announced as soon as this week.
Collins