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Discovery assumes control of HBO, CNN and Warner Bros.

2022-04-09T00:21:20.223Z


Discovery's merger with WarnerMedia went through on Friday, creating a streaming media giant led by CEO David Zaslav.


Discovery and WarnerMedia finalize their merger.

New York (CNN Business)

-- Discovery's merger with WarnerMedia went into effect Friday afternoon, creating a streaming media giant led by CEO David Zaslav.


The deal combines two content mines and heralds new changes in the streaming age.

The new company, Warner Bros. Discovery, will go public on Monday.

Zaslav will hold an event for employees of the combined company later in the week, according to a person familiar with the matter.

  • AT&T spins off WarnerMedia and merges it with Discovery

The deal, first announced last May, is a crowning moment for Zaslav and his longtime collaborators at Discovery, best known for brands such as Animal Planet, TLC and HGTV.

The merger adds HBO, CNN, TNT, Turner Sports, the Warner Bros. movie studio and a host of other media assets to the company.

Discovery executive Bruce Campbell will oversee all revenue from the new company.

JB Perrette will lead the global streaming and interactive entertainment business.

Kathleen Finch will oversee all networks except CNN and HBO.

CNN will be managed separately, with Chris Licht becoming president and CEO of CNN Global.

Everyone will report to Zaslav.

Three key WarnerMedia creative executives will also report directly to Zaslav: HBO chief content officer Casey Bloys;

Warner Bros. Television Group Chairman Channing Dungey;

and Warner Bros. Picture Group Chairman Toby Emmerich.

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Shareholders of AT&T, which spun off WarnerMedia earlier this week, own 71% of the new company's shares, and Discovery 29%.

However, the operation represents a change of direction in AT&T's plan to become a media heavyweight.

With the "closing" of the deal this Friday, in Wall Street parlance, AT&T has officially unwound its 2018 acquisition of Time Warner and refocused on its core business.

AT&T CEO John Stankey said goodbye to the media company on Friday in a heartfelt statement to his employees.

"Getting to this point was one of the hardest decisions of my life," he wrote.

"I'm sure you're not surprised that I came in with a good deal of anxiety, disappointment and worry about the changes it would trigger. But through it all, I remain confident that we're on the right track."

"Over time," Stankey wrote, "the combination of WarnerMedia and Discovery will create a stronger company and accelerate the already strong pace of innovation and change they have established."

Warner Bros. Discovery anticipates $3 billion in what the companies often call "synergies," meaning the combination will almost certainly lead to layoffs.

Many of Warner's top executives have already left the company, including WarnerMedia CEO Jason Kilar, whose last day was this Friday.

Zaslav wrote in an internal memo Thursday that "we are establishing a simpler organizational structure with fewer layers, more accountability, and more screen-focused resources."

DiscoveryWarnerMedia

Source: cnnespanol

All news articles on 2022-04-09

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