WarnerMedia, Discovery spin-off confirmed

Following weekend speculation, AT&T and Discovery have confirmed a definitive agreement to combine WarnerMedia’s premium entertainment, sports and news assets with Discovery’s nonfiction and international entertainment and sports businesses to create a premier, standalone global entertainment company.

Under the terms of the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, AT&T would receive $43 billion (subject to adjustment) in a combination of cash, debt securities, and WarnerMedia’s retention of certain debt, and AT&T’s shareholders would receive stock representing 71 per cent of the new company; Discovery shareholders would own 29 per cent of the new company. The Boards of Directors of both AT&T and Discovery have approved the transaction.

Source: WarnerMedia, Discovery spin-off confirmed