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AT&T has thrown in the towel on the Entertainment Market, it has been less than three years and already they are divesting the WarnerMedia Division they acquired in 2018 for $85 Billion to Discovery.

The two companies announced that WarnerMedia’s Assets would combine with Discovery to create a “Premier, Standalone Global Entertainment Company,” according to a press release. This new deal would mean that AT&T would receive about $43 Billion, their shareholders would also receive “stock representing 71% of the new company,” as the press release read further. The new deal will work to bring “compelling content to DTC subscribers across its portfolio, including HBO Max and the recently launched discovery+.” So, in terms of content, the deal will combine “WarnerMedia’s storied content library of popular and valuable IP with Discovery’s global footprint.”

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The new company will be able to invest in more original content for its streaming services, enhance the programming options across its global linear pay TV and broadcast channels, and offer more innovative video experiences and consumer choices.”

To be honest, while AT&T has been struggling for a long time in the Entertainment Market, IGN’s Julia Alexander pointed out a timeline of AT&T’s attempts at Media Ambitions starting with 2015, when the Company bought DirecTV (including the debt). Then a year goes by and they proposed to buy TimeWarner, the problem there? AT&T goes to court with the Department of Justice, for Antitrust Concern. AT&T has sold off its DirecTV business for a fraction of what the company paid (AT&T netted just under $8 billion), and is divesting its WarnerMedia business.

In December 2020, AT&T agreed to sell the Anime Streaming Service, Crunchyroll to Sony for $1.2 Billion but is now under an Antitrust Review by the U.S. Department of Justice, it was extended recently. Here are notable assets that WarnerMedia own:

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  1. Cartoon Network (This includes Adult Swim and Toonami Programming Blocks.)
  2. DC Comics
  3. Boomerang
  4. HBO Max
  5. VRV
  6. Warner Bros. Japan

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