Warner Media ‘Spun Off’ To Discovery
Source: CD Media Staff
Last week AT&T announced the ‘spin off’ of Warner Media, acquired three years ago in AT&T’s acquisition of Time Warner. The entertainment assets will form a NewCo with Discovery. AT&T will refocus efforts on its core communications business.
Does anyone notice the buried lead in the two paragraphs below from CNBC describing the deal?
Under the agreement, AT&T will unwind its $85 billion acquisition of Time Warner, which closed just under three years ago and form a new media company with Discovery. The deal would create a new business, separate from AT&T, that could be valued at as much as $150 billion, including debt, according to The Financial Times, reported CNBC.
AT&T said it would receive an aggregate amount of $43 billion in a combination of cash, debt and WarnerMedia’s retention of certain debt. AT&T shareholders would receive stock representing 71% of the new company, while Discovery shareholders would own 29%, it added.
Yes, you guessed it — AT&T turned an entertainment powerhouse worth $85 billion into a shell of itself in only three years, worth $43 billion. That must have been hard work!
All we have to do is tell you Warner Media includes CNN and HBO, two very ‘woke’ organizations that have been used as propaganda for the ‘progressive’ Marxists in America to lie to the American people.
“It is super exciting to combine such historic brands, world class journalism and iconic franchises under one roof and unlock so much value and opportunity,” Discovery President and CEO David Zaslav said, adding that AT&T and Discovery’s assets “are better and more valuable together.”
Unlock value after so much value having been destroyed.
Might AT&T have wanted to desperately get rid of the liability they know is coming due to CNN’s involvement pushing the Chinese Communist Party line on our country for years?