• Loading stock data...
Friday, July 18, 2025

Discovery-WarnerMedia Merger Clears IRS Hurdle

  • The $43 billion merger between Discovery and WarnerMedia received approval from the IRS.
  • The deal is structured to be tax-free for shareholders.
WarnerMedia-Discovery-AT&T
WarnerMedia/Design: Alex Brooks

The historic Discovery-WarnerMedia mega-merger will be able to proceed as structured after it received approval from the IRS.

The $43 billion deal will bring together WarnerMedia’s Turner Sports, TNT, TBS, CNN, Warner Bros., HBO, and Discovery’s Eurosport, Food Network, HGTV, and others. 

Discovery also has the rights to the Olympics across Europe through 2024 in a six-year, $1.5 billion deal, and is reportedly in talks to form a joint venture with BT Sport, which holds U.K. Premier League rights.

On Wednesday, WarnerMedia-owner AT&T revealed that the deal received a favorable rating from the IRS as a “Reverse Morris Trust,” a transaction type designed to be tax-free for shareholders.

  • Under a Reverse Morris Trust, AT&T will first spin off WarnerMedia before merging it with Discovery.
  • To remain tax-exempt, AT&T shareholders must retain a majority stake in the company. As currently structured, they will receive 71% of the new company’s shares and be able to name seven of 13 board members.
  • Discovery CEO David Zaslav and CFO Gunnar Wiedenfels will run the new company.

Not a Done Deal

While the merger received the blessing of the European Commission earlier this week, Democratic lawmakers wrote to the Department of Justice this month asking for close scrutiny of the deal. 

If completed, the combined entity will be worth around $130 billion and hold broadcast rights to the NBA, NHL, and Olympics.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

U.K. Appoints New Soccer Regulator, EPL Matches Stay Behind Paywall

Men’s soccer in England will receive new levels of oversight.

Liverpool to Pay Diogo Jota’s $20M Contract to His Widow

Jota had two years remaining on his contract.
Woody Johnson, primary owner of the New York Jets, is shown, at the Atlantic Health Jets Training Center, Monday, January 27, 2025, in Florham Park.

Premier League’s NFL Ties Deepen As Jets Owner Buys Crystal Palace

John Textor was at risk of running afoul of the UEFA’s ownership rules.

Premier League Embraces NFL-Style Flex Scheduling for 2025–26

The league warns of additional games “moving at relatively short notice.”

Featured Today

Jul 21, 2024; Ayrshire, SCT; Xander Schauffele celebrates with Claret Jug after winning the Open Championship golf tournament at Royal Troon.

The Boozy History and Traditions of The Open’s Claret Jug

The Open awards the world’s most famous wine decanter.
2025 PDC World Darts Championship Final - Luke Littler vs Michael Van Gerwen
July 16, 2025

A Teen Darts Prodigy Is Becoming Bigger Than the Game Itself

Luke ‘The Nuke’ Littler is cashing in on his devastatingly accurate shot.
May 31, 2025; Philadelphia, PA, USA; Sydney McLaughin-Levrone (USA) reacts before the women's 100m hurdles during the Grand Slam Track Philadelphia at Franklin Field
exclusive
July 13, 2025

Track’s New Money Is Running Into Old Problems

The sport’s big-money era has hit some speed bumps in 2025.
Bobbleheads are seen at Vintage Indy Sports, Tuesday, April 29, 2025 in Speedway. The local sports memorabilia store opened recently.
July 12, 2025

Baseball’s Bobbleheads Are the Center of the Collectibles Universe

Baseball’s most important keepsake drives long lines—and big business.
Apr 26, 2025; San Francisco, California, USA; Houston Rockets guard Fred VanVleet (5) before game three of first round for the 2024 NBA Playoffs against the Golden State Warriors at Chase Center.

Rockets Get $20 Million in Wiggle Room From New VanVleet Deal

VanVleet first signed with the Rockets in 2023.
April 20, 2025

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

Aston Martin is currently seventh in the constructors championship.
June 24, 2025

Timberwolves’ 4-Year Ownership Saga Ends As A-Rod, Lore Take Over

The unanimous approval brought a clean end to a long-disputed transaction.
Sponsored

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

Dealmaker Jeffrey Kaplan maps the evolution of sports as an asset class
March 27, 2025

Peyton Manning’s Omaha Productions Gets PE Boost

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