In a quick turnaround after rumors of a merger surfaced this weekend, AT&T has announced that it is spinning off WarnerMedia (which includes HBO) and joining forces with Discovery to create a new media company as part of a massive $43 billion merger.
AT&T says that as part of the new deal, AT&T will get $43 billion in cash, debt securities, and debt retention, with AT&T receiving a 71% stake in the new company and Discovery getting the other 29%. The new media company will be helmed by current Discovery CEO David Zaslav, with other execs from both AT&T and Discovery stepping in to fill out the new company’s board of directors (seven from AT&T, and six from Discovery including Zaslav).
