AT&T, Discovery in Talks to Combine Media Assets © HGTV AT&T Inc. is in talks to combine its sprawling WarnerMedia division with Discovery Inc., according to people familiar with the matter, potentially unwinding the telecom giant’s signature bet on media, as pressure on the traditional entertainment business mounts.
The talks, which likely value the AT&T business at well over $50 billion with debt, could lead to an agreement by Monday, the people said, who cautioned that the talks could still fall apart.
A deal between WarnerMedia and Discovery would further consolidate a media business buffeted by cord-cutting and competition from streaming video. WarnerMedia owns cable channels such as HBO, CNN, TNT and TBS as well as the Warner Bros. television and film studio. Discovery has a portfolio that includes its namesake network and HGTV.
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