• Loading stock data...
Sunday, November 24, 2024

AT&T CEO Details $130B WarnerMedia Merger

  • AT&T saw its U.S.-focused customer base as an awkward fit for the global streaming wars, according to CEO John Stankey.
  • That, plus a major cash haul, inspired its spin off of WarnerMedia, which will merge with Discovery.
Presley Ann/Getty Images for WarnerMedia/Design: Alex Brooks

Is AT&T spinning off WarnerMedia and merging it with Discovery to balance its books, or to create a company that can compete in the global streaming wars?

AT&T CEO John Stankey cited both reasons as key motivators for the move that will create the world’s next streaming giant.

“The new company will have a content spend that exceeds most of its industry peers,” Stankey said at a J.P. Morgan conference about tech, media, and communications on Monday.

The new entity — which will combine TNT, TBS, Eurosport, GolfTV, CNN, HBO and HBO MAX, Discovery, Bleacher Report, and numerous other media properties — will spend $20 billion annually on content. It is expected to have a market value around $130 billion.

Stankey also acknowledged that AT&T’s bank account was a factor, saying revenue from the Discovery deal will address “concerns about the balance sheet.”

AT&T’s revenue was up 2.7% year-over-year in Q1 to $43.9 billion, leading to 60% growth in profits, which reached $7.9 billion.

AT&T has mainly focused on the U.S. — until now. Stankey said, “It’s time to unleash the media assets to go and seize a multi-hundred-billion-dollar opportunity.”

  • TNT and TBS have deals with the NBA, NHL, and MLB.
  • Discovery’s sports media deals are all outside the U.S., namely Eurosport’s network and GolfTV’s 12-year, $2 billion overseas rights deal for the PGA Tour.
  • Discovery also holds live rights to the Olympic Games in 50 territories through 2024.

Comcast reportedly had its eye on WarnerMedia as an acquisition target, as well.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

DirecTV-Dish Deal Is Dead, Spelling More Trouble for Pay TV

Bondholder objections undo an agreement to create the largest U.S. pay-TV distributor.
Hosts of Inside the NBA on TNT
exclusive

ESPN Discussing Alt-Cast Ideas for Charles Barkley, ‘Inside the NBA’

TNT retains complete creative control of the show when it airs on ESPN.
Nov 19, 2024; Boston, Massachusetts, USA; The Boston Celtics and Cleveland Cavaliers play during the second half at TD Garden.

Cavs vs. Celtics Draws Big TV Numbers in NBA Cup Showdown

The game averaged 1.94 million viewers and peaked at 2.7 million.
opinion

Charles Barkley Addition Reinforces ESPN’s Focus: Star Power

ESPN’s wheeling and dealing has built its strongest talent lineup in years. 
podcast thumbnail mobile
Front Office Sports Today

How Conference Expansion Has Changed College Football

0:00

Featured Today

Can an Elite Women’s Soccer School Survive the New College Sports Moneyball?

Santa Clara faces an uphill battle in the new college sports landscape.
Nov 16, 2024; Washington, District of Columbia, USA; Washington Spirit forward Trinity Rodman (2) celebrates after defeating NJ/NY Gotham FC in a 2024 NWSL Playoffs semifinal match at Audi Field. Mandatory Credit:
November 22, 2024

The Washington Spirit’s Business Makeover Carried Them to the Finals

The team’s return to the NWSL championship looks a lot different from 2021.
Nov 18, 2023; Las Vegas, Nevada, USA; Williams Racing driver Logan Sargeant of the United States (2) during the Las Vegas Grand Prix at Las Vegas Strip Circuit.
November 21, 2024

F1 Grand Prix Upended Vegas Last Year. Stakes Are High for Its..

Stakes are high as F1 gears up for a successful second act.
Classic Football Shirts New York Pop-Up
November 18, 2024

Vintage Soccer Jerseys Have Found a Sweet Spot in the Lucrative U.S...

The money-making shirts are at the prime intersection of memorabilia and fashion.

Why Liberty Media Spun Off Assets, Shook Up Leadership

Longtime CEO Greg Maffei is stepping down at the end of the year.
Jul 7, 2021; Tampa, Florida, USA; Tampa Bay Lightning owner Jeff Vinik hoists the Stanley Cup after the Lightning defeated the Montreal Canadiens 1-0 in game five to win the 2021 Stanley Cup Final at Amalie Arena.
October 25, 2024

Lightning Sell at $1.8B Valuation, Nearly Double Prior NHL Record

The Lightning unveiled a multistep and multiyear sale process.
Oct 27, 2024; Seattle, Washington, USA; Buffalo Bills quarterback Josh Allen (17) passes against the Seattle Seahawks during the second quarter at Lumen Field.
October 30, 2024

Buffalo Bills in Talks to Sell Stake to PE Firm Arctos: Report

Arctos already has a slice of Paris Saint-Germain and the PGA Tour, among other assets.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
May 24, 2024; Minneapolis, Minnesota, USA; Dallas Mavericks owner Mark Cuban celebrates after defeating the Minnesota Timberwolves in game two of the western conference finals for the 2024 NBA playoffs at Target Center.
October 9, 2024

Why Mark Cuban Sold the Dallas Mavericks When He Did

Cuban sold his majority stake to the Adelson family in December 2023.
Young fans look over Michigan State sports equipment on display during the Spring Showcase on Saturday, April 20, 2024, at Spartan Stadium in East Lansing.
October 2, 2024

Private Equity Firms Buy Rival Hockey Brands CCM and Bauer

Both brands have been around for decades and changed ownership in the same week.
September 18, 2024

Rogers Tightens Grip on Canadian Sports With $3.46B MLSE Stake

The Blue Jays owner makes a big move to corner most of the Toronto pro sports market.
Fans watch TV screens during a game viewing party for fans at the FanDuel Sportsbook at Meadowlands Racing & Entertainment in East Rutherford, New Jersey.
September 18, 2024

FanDuel Parent Buys Italian Gambling Company in Bid for Growth

Flutter is making big moves in Italy and Brazil.