Jump to content

Warner Bros. Discovery

From Wikipedia, the free encyclopedia

This is an old revision of this page, as edited by Prabh135 (talk | contribs) at 03:24, 27 February 2022 (←Removed redirect to Discovery, Inc.#Merger with WarnerMedia). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Warner Bros. Discovery
Company typePublic
Industry
Predecessor
FoundedMid-2022; 2 years ago (2022)
Headquarters
United States
Area served
Worldwide
Key people
David Zaslav (CEO)
Products
Brands
Owner

Warner Bros. Discovery is an upcoming American mass media and entertainment conglomerate. The company was formed though the merger of WarnerMedia and Discovery, Inc., which is expected to be completed in mid-2022.


History

On May 16, 2021, Bloomberg News reported that AT&T was in talks with Discovery, Inc. for it to merge with WarnerMedia, the parent company of Warner Bros., to form a publicly-traded company that would be divided between its shareholders.[1][2]

On May 17, 2021, AT&T announced that it had agreed to spin off its content subsidiary WarnerMedia (the former Time Warner, which AT&T acquired in 2018 for just over US$85 billion in an attempt to become a vertically integrated media conglomerate) and merge it with Discovery Inc. to form a new company, subject to regulatory approval. The merger, scheduled to be completed in mid-2022, will be structured as a Reverse Morris Trust with AT&T shareholders holding a 71% interest in the new company's stock and appointing seven board members, and Discovery shareholders holding a 29% interest and appointing six board members. AT&T will receive US$43 billion in cash and debt from the spin-off.[3][4][5]

The new company will be led by Discovery's current CEO, David Zaslav, replacing WarnerMedia's CEO Jason Kilar.[3] Zaslav stated that the two companies spend a combine US$20 billion annually on content (outpacing Disney, Netflix and Amazon). The company will aim to expand their streaming services, which includes WarnerMedia's HBO Max, to reach 400 million global subscribers.[4]

Warner Bros. Discovery

On June 1, 2021, it was announced that the merged company would be known as Warner Bros. Discovery, and an interim wordmark was unveiled with the tagline "The stuff dreams are made from", a line from the 1941 Warner Bros. film, The Maltese Falcon. Zaslav explained that it would reflect "the combination of Warner Bros.' fabled hundred-year legacy of creative, authentic storytelling and taking bold risks to bring the most amazing stories to life, with Discovery’s global brand that has always stood brightly for integrity, innovation and inspiration."[6][7]

In November 2021, Discovery and WarnerMedia discussed a plan to combine the two streaming services, HBO Max and Discovery+, into one streaming service in two phases: an initial phase that allows for quick bundling of the services and a second phase that allows for a common service on one tech platform.[8] In the same month, it was announced that Discovery will rename itself Warner Bros. and reclassify and convert its stock into stock of WBD.[9]

On December 22, 2021, it was announced that the transaction was approved by the European Commission and it is expected to be completed in mid-2022.[10][11]

On January 5, 2022, The Wall Street Journal reported that WarnerMedia and ViacomCBS were exploring a possible sale of either a majority stake or all of The CW, and that Nexstar Media Group (which became The CW's largest affiliate group when it acquired former WB co-owner Tribune Broadcasting in 2019) was considered a leading bidder.[12] The news led to speculation that, should a sale take place, new ownership could steer the network in a new direction, transforming The CW from a young adult-oriented network into one that featured more unscripted and even national news programming.[13] However, reports also indicated that WarnerMedia and ViacomCBS could include a contractual commitment that would require any new owner to buy new programming from those companies, allowing them to reap some continual revenue through the network.[14] Network president/CEO Mark Pedowitz confirmed talks of a potential sale in a memo to CW staffers, but added that "It's too early to speculate what might happen" and that the network "must continue to do what we do best."[15][16]

On January 26, 2022, it was reported that the merger between WarnerMedia and Discovery, Inc. is expected to close sometime during the second quarter of 2022.[17][18]

On February 1, 2022, it was reported that AT&T was going to spin off WarnerMedia in a $43 billion deal.[19][20] Also on the same month, it was announced that the WarnerMedia and Discovery merger was approved by the Brazilian antitrust regulator Cade.[21]

On February 9, 2022, it was announced that the deal was approved by the United States Department of Justice.[22]

On February 10, 2022, it was announced that Discovery set March 11 for shareholder vote on WarnerMedia merger.[23]

References

  1. ^ Hammond, Ed (May 16, 2021). "AT&T Is Preparing to Merge Media Assets With Discovery". Bloomberg News. Retrieved June 2, 2021.
  2. ^ Sherman, Alex (May 16, 2021). "AT&T in advanced talks to merge WarnerMedia with Discovery, deal expected as soon as Monday". CNBC. Retrieved June 2, 2021.
  3. ^ a b Hammond, Ed; Turner, Nick (May 17, 2021). "AT&T's WarnerMedia, Discovery to Merge in Blockbuster Deal". Bloomberg News. Retrieved June 2, 2021.
  4. ^ a b Kovach, Steve; Meredith, Sam (May 17, 2021). "AT&T announces $43 billion deal to merge WarnerMedia with Discovery". CNBC. Retrieved June 2, 2021.
  5. ^ Hayes, Dade (May 17, 2021). "David Zaslav And John Stankey Outline Plans For Merging Discovery And WarnerMedia, Addressing Future Of Jason Kilar, CNN, Streaming". Deadline Hollywood. Retrieved June 2, 2021.
  6. ^ Palmeri, Christopher (June 1, 2021). "Warner Bros. Discovery Will Be Name of Company Shorn From AT&T". Bloomberg News. Retrieved June 2, 2021.
  7. ^ Goldsmith, Jill (June 1, 2021). "Warner Bros. Discovery Set As Name Of Merged Company". Deadline Hollywood. Retrieved June 2, 2021.
  8. ^ Bunson, Ben (November 3, 2021). "Discovery+, HBO Max may bundle before combining after merger". FierceVideo. Retrieved November 11, 2021.
  9. ^ Goldsmith, Jill (November 18, 2021). "Discovery, AT&T's WarnerMedia Talks Collapsed In April Before They Clinched May Deal, According To Massive SEC Filing". Deadline. Retrieved November 18, 2021.
  10. ^ Vlessing, Etan (December 22, 2021). "Discovery-WarnerMedia Merger Gets European Union Approval". The Hollywood Reporter. Retrieved December 22, 2021.
  11. ^ "European Commission grants approval for Discovery acquisition of WarnerMedia". Reuters. December 22, 2021. Retrieved December 22, 2021.
  12. ^ Flint, Joe (January 5, 2022). "WarnerMedia and ViacomCBS Are Exploring Possible Sale of CW Network". The Wall Street Journal. Retrieved January 6, 2022.
  13. ^ Weprin, Alex; Goldberg, Lesley (January 12, 2022). "Will The CW Be a Streaming Wars Casualty?". The Hollywood Reporter. Retrieved January 12, 2022.
  14. ^ Farley, Ashley (January 13, 2022). "REPORT: The CW's Potential Sale May Kill Its Original Programming". Comic Book Resources. Retrieved January 14, 2022.
  15. ^ Goldberg, Lesley; Weprin, Alex (January 6, 2022). "ViacomCBS and WarnerMedia Exploring Sale of The CW". The Hollywood Reporter. Retrieved January 9, 2022.
  16. ^ Andreeva, Nellie (January 6, 2022). "The CW CEO Mark Pedowitz Confirms WarnerMedia & ViacomCBS Exploring "Strategic Opportunities" As Majority Stake In Network Is Shopped With Nexstar Among Suitors" As Majority Stake In Network Is Shopped With Nexstar Among Suitors – Update". Deadline Hollywood. Retrieved January 6, 2022.
  17. ^ Hepburn, Tmera (January 26, 2022). "WarnerMedia and Discovery Merger Now Expected to Close This Spring". Cord Cutters News. Retrieved January 27, 2022.
  18. ^ Pinto, Jordan (January 27, 2022). "WarnerMedia-Discovery merger expected to close in Q2, says AT&T's Stankey". C21 Media. Retrieved January 27, 2022.
  19. ^ Spangler, Todd (February 1, 2022). "AT&T Sets Plan to Spin Off WarnerMedia in $43 Billion Deal". Variety. Retrieved February 1, 2022.
  20. ^ Szalai, George (February 1, 2022). "AT&T Picks WarnerMedia Spin-Off as Structure for Key Step in Discovery Merger". The Hollywood Reporter. Retrieved February 1, 2022.
  21. ^ "Cade surpreende e aprova fusão Discovery/WarnerMedia sem restrições". Notícias da TV (in Portuguese).
  22. ^ Szalai, Georg (February 9, 2022). "Discovery-WarnerMedia Merger Gets U.S. Antitrust Clearance". The Hollywood Reporter. Retrieved February 9, 2022.
  23. ^ Goldsmith, Jill (February 10, 2022). "Discovery Sets March 11 For Shareholder Vote On WarnerMedia Merger". Deadline Hollywood. Retrieved February 10, 2022.
Retrieved from "https://en.wikipedia.org/enwiki/w/index.php?title=Warner_Bros._Discovery&oldid=1074221593"