Mixed photographs of AT&T CEO John Stankey (L)and john stankey WarnerMedia CEO Jason Kilar.
AT&T is in superior talks to merge WarnerMedia with Discovery in a deal that may strengthen the mixed firm towards rival media giants Netflix and Disney, based on folks accustomed to the matter.
A deal might be introduced as quickly as tomorrow, mentioned the folks, who requested to not be named as a result of the discussions are non-public. Talks aren’t ultimate and will nonetheless collapse, mentioned the folks.
AT&T and Discovery declined CNBC’s request for remark.
The doubtless construction of the deal will mix Discovery with all of WarnerMedia, which is able to develop into a brand new publicly traded firm co-owned by AT&T and Discovery shareholders, the folks mentioned.
The precise break up between the 2 firms could not be decided. Discovery has a $16 billion market capitalization and a $30 billion enterprise worth. AT&T acquired Time Warner, since renamed to WarnerMedia, for $85 billion in fairness worth in 2018.
Bloomberg Information first reported talks between AT&T and Discovery for his or her content material property.