

The transaction will saddle the new combined entity with substantial debt, but Zaslav said today that after a careful review of WarnerMedia’s books it seems that leverage at deal close would be less than originally anticipated. Discovery shareholders would end up owning 29% of the new company. Under the terms of the deal, AT&T would receive $43 billion in a combination of cash, debt securities and WarnerMedia’s retention of certain debt, and AT&T’s shareholders would receive stock representing 71% of the new company. and Bloys, the HBO/HBO Max content chief.ĪT&T’s Warner Media and Discovery announced plans to merge in May. “We are cheering them on with the success of Dune around the world, with Ann and Toby on that side, and Casey Bloys having an incredible run of success with Succession and White Lotus and Mare of Easttown,” he said, referring to Ann Sarnoff, chair and CEO, WarnerMedia Studios and Networks Group, Toby Emmerich, president of Warner Bros. “We both committed to do that to keep our ecosystems nourished and strong and growing so that when we come together we will come together in strength,” he said. Zaslav said that’s not happening, that both companies are spending on content leaning into the merger.

When mergers take this long to close businesses can tend to slow down and hold back on investments awaiting regulatory approval. WarnerMedia has strong sports in Latin America, leading entertainment programming and a world news leader in CNN. Discovery is strong with women, in nonfiction and a sports leader in Europe, he noted. He reiterated his belief that the two companies and their streaming services are extremely complementary between covering every demo and interest. I think we are going to be a really strong team,” he said. Discovery’s chief development, distribution and legal officer, Bruch Campbell, and Jean-Briac (JB) Perrette, president and CEO of Discovery Networks International, will play key roles, and Zazlav said he’s looking forward to welcoming an unspecified team from Warner (he called Andy Forssell, EVP & GM, WarnerMedia Direct-to-Consumer, “super”) and “to bringing in some outside experience.” Zaslav did unveil a few management details of the new combined company including that Discovery CFO Gunnar Widenfels will be chief financial officer for one - not a surprise. AT&T CEO John Stankey Sees 'No Surprises' As WarnerMedia-Discovery Deal Awaits Approval
