David Zaslav, who has led Discovery for 14 years, will be in charge of the new business, an official name for which has not yet been given. AT&T shareholders will own 71 percent of the new company, Discovery shareholders 29 percent. As for everyone else, that’s TBD: Executives from WarnerMedia and Discovery will be in “key leadership roles,” according to a press release.

“We think together, the combination makes us the best media company in the world,” Zaslav told press about the merger, adding the new business will spend $20 billion on content. “We will be one company, one culture, one mission: Great stories, great content that entertains people in every country around the world.” Related Former WarnerMedia CEO Jason Kilar Sees the Future: 3 Streamers, More TV in Theaters The CNN+ $2.99 Price-Cut Promotion Doesn’t Address the Correct Value: Free Related Oscars 2023: Can Anyone Top ‘Maverick’ in Best Sound? Oscars 2023: Best Original Song Predictions
The merger announcement comes less than three years after AT&T arrived at Hollywood’s door by finalizing the acquisition of Time Warner in June 2018. Telecommunications analyst Craig Moffett told the Los Angeles Times that it’s a “dismal failure” for the telecommunications giant to have to spinoff its entertainment assets into a new venture with Discovery just three years later, adding, “What an embarrassing chapter for what was once one of America’s most storied companies.” IndieWire will have more to come about what the merger means, but for now here are the first waves of reactions to the deal. The New York Times: Variety: “We think together, the combination makes us the best media company in the world,” Zaslav told press about the merger, adding the new business will spend $20 billion on content. “We will be one company, one culture, one mission: Great stories, great content that entertains people in every country around the world.” CNN: “There’s no way this deal doesn’t make AT&T look like fools,” said a WarnerMedia veteran. There was also trepidation about a future lead by the hard-charging Discovery CEO David Zaslav. Zaslav has a reputation as a strong-willed CEO who is known for turning over management teams and shifting strategic gears quickly when results are not to his liking. A former WarnerMedia insider told The Hollywood Reporter that all of these changes brought on by AT&T management has “destroyed the DNA” of the company, adding, “It wasn’t perfect but it really was a cool place…The shame of it. The arrogance.” The Hollywood Reporter: “Within the next two years, it’s going to be put up or shut up for all of us,” he said. “Can you show you’re scaling? Are you going to be a player in the US? Are you going to be a player around the world?” He predicted consolidation: “I think ultimately a lot of those companies are going to realize, ‘I don’t have enough.’ And then they’re going to say, ‘Who can we merge with or who can we do a deal with? And if we put together our [intellectual property], maybe we can compete with Disney.’”  

— Joe Flint (@JBFlint) May 17, 2021

— ed hammond (@EdHammondNY) May 17, 2021

Things we know, thanks to @EdHammondNY > The deal would unite entertainment assets from the two companies > The deal could be announced as soon as this week. Things we don’t yet know: > Everything else.https://t.co/iCkEKjfcIe — Lucas Shaw (@Lucas_Shaw) May 16, 2021 Sign Up: Stay on top of the latest breaking film and TV news! Sign up for our Email Newsletters here.