WarnerMedia unit and Discovery Inc have completed their merger, the companies announced Friday. The resultant company to be named Warner Bros Discovery. The merger closed after nearly a year when the two companies made an initial announcement and plan to form a standalone global entertainment and media business. Warner Bros Discovery stock is set to begin trading Monday under the ticker symbol “WBD.”
“Today’s announcement marks an exciting milestone not just for Warner Bros. Discovery but for our shareholders, our distributors, our advertisers, our creative partners and, most importantly, consumers globally,” said David Zaslav, Warner Bros. Discovery chief executive officer in a statement.
Warner Bros Discovery’s portfolio includes Discovery Channel, Warner Bros. Entertainment, CNN, HBO, Cartoon Network; streaming services Discovery+ and HBO Max.
According to AT&T, the deal will allow the two companies to “combine WarnerMedia’s storied content library of popular and valuable IP with Discovery’s global footprint, trove of local-language content and deep regional expertise across more than 200 countries and territories.”
As per the agreement, at close AT&T received $40.4 billion in cash and WarnerMedia’s retention of certain debt. Additionally, shareholders of AT&T received 0.241917 shares of Warner Bros Discovery for each share of AT&T common stock they held at the close. As such, AT&T shareholders received 1.7 billion shares of WBD.
Meanwhile, amid what AT&T calls the “dawn of a new age of connectivity,” the company is planning to consolidate its telecommunications venture. “With the close of this transaction, we expect to invest at record levels in our growth areas of 5G and fiber, where we have strong momentum, while we work to become America’s best broadband company,” said John Stankey, AT&T chief executive officer.
WarnerMedia Chief Executive Officer and other executives including Ann Sarnoff departed the company earlier this week ahead of the merger.
