• Loading stock data...
Saturday, May 31, 2025

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

Panthers-Oilers Rematch Could Be Big in Canada. Will U.S. Ratings Dip?

Likely viewership declines in the U.S. are countered by robust Canadian audiences.
Mar 27, 2024; Los Angeles, CA, USA; A general overall view of the Crypto.com Arena with the March Madness Elite 8 and Sweet 16 logo at center court.

Media Exec on March Madness Expansion Potential: ‘Chump Change’

CBS and TNT pay about $1 billion a year for the media rights.

The Day TNT’s NBA Future Slipped Away: Sports Media Sliding Doors

In 2022, David Zaslav said WBD didn’t “have to have the NBA.”

Featured Today

PSG and the City of Paris Can Join European Soccer’s Elite

What a maiden Champions League title would mean for the French club.
May 30, 2025

How the Champions League Anthem Took on a Life of Its Own

The composer didn’t know he wrote a timeless hit three decades ago.
May 25, 2025

How Rolex Paved the Way for Luxury’s Love Affair With Tennis

“It’s almost impossible to think about tennis without thinking about Rolex.”
Mar 23, 2025; Miami, FL, USA; Alexandra Eala (PHI) reacts after winning a point against Madison Keys (USA)(not pictured) on day six of the Miami Open at Hard Rock Stadium.
May 24, 2025

Alex Eala Is Defying Her Country’s Odds to Make French Open History

The Philippines native has overcome a unique set of financial odds.

Max Verstappen Linked to $300M Aston Martin Deal Ahead of Miami GP

Aston Martin is currently seventh in the constructors championship.
March 20, 2025

High School Sports Power Signs Eight-Figure Rights Deal in First

The deal pays roughly $1 million annually, FOS has learned.
March 27, 2025

Peyton Manning’s Omaha Productions Gets PE Boost

The Hall of Famer’s company gains another prominent backer.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

In Episode 7 of Portfolio Players, go inside the boardroom with Avenue Capital CEO and former Milwaukee Bucks co-owner Marc Lasry on Giannis’s future, women’s sports, and upstart leagues like TGL and Unrivaled. 
March 20, 2025

Maxx Crosby’s Agent: Edge Rushers Set to Dominate NFL’s Non-QB Market

Maxx Crosby just signed a three-year, $106.5 million extension.
March 4, 2025

Eagles Make Saquon Barkley NFL’s Highest-Paid Running Back Ever

Barkley is coming off a historic 2024 season with the Eagles.
February 18, 2025

Tiger Woods Signs First PGA Tour Player to Wear Sun Day Red

Karl Vilips will wear Sun Day Red at his season debut at the Mexico Open.
Teammates embrace during matchup in The Hundred cricket league
February 15, 2025

Google, Microsoft, Adobe CEOs Buy Stakes in Cricket League

The England and Wales Cricket Board raised £520m by selling team stakes.