May 17, 2021
AT&T Inc. is preparing to spin off its media business and merge it with with Discovery Inc. in a tax-friendly deal, according to people with knowledge of the matter, a surprise reversal for a company that spent $85 billion to acquire the assets less than three years ago.
A deal could be announced as soon as this week, said the people, who asked not to be identified because the information was private.
The transaction will be structured as a so-called Reverse Morris Trust, or a merger with another company that’s structured to be tax-free, one of the people said.
The Straits Times
AT&T to merge media assets with Discovery in US$43 billion deal
The plan will combine Discovery s reality-TV empire with AT&T s vast media holdings, which include CNN and HBO.PHOTOS: REUTERS, NYTIMES
Published5 hours ago
https://str.sg/JvP8
They can read the article in full after signing up for a free account.
Share link:
Or share via:
Sign up or log in to read this article in full
Sign up
All done! This article is now fully available for you
Read now
Get unlimited access to all stories at $0.99/month for the first 3 months.
Get unlimited access to all stories at $0.99/month for the first 3 months.
AT&T, Discovery merge media assets to create giant bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
AT&T Inc is preparing to spin off its media business and merge it with Discovery Inc in a tax-friendly deal, people with knowledge of the matter said, a surprise reversal for a company that spent US$85 billion to acquire the assets less than three years ago.
A deal could be announced as soon as this week, said the people, who asked not to be identified because the information is private.
The transaction would be structured as a so-called Reverse Morris Trust, or a merger with another company that is structured to be tax-free, one of the people said.
The idea is to
AT&T strikes blockbuster $43 billion deal with Discovery to form media giant
AT&T strikes blockbuster $43 billion deal with Discovery to form media giant
AT&T shareholders will receive stock representing 71% of the new company and Discovery stockholders will own 29% of the new company.
Golden Boy, the Spirit of Communication statue, is pictured in the new AT&T Discovery District in downtown Dallas, Tuesday, April 20, 2021. The statue, originally called Genius of Telegraphy, stood atop AT&T s headquarters in New York City decades ago.(Tom Fox / Staff Photographer)
6:36 AM on May 17, 2021 CDT
Dallas-based AT&T Inc. agreed to spin off its media operations in a deal with Discovery Inc. that will create a new entertainment company, merging assets ranging from CNN and HBO to HGTV and the Food Network.