AT&T and Discovery Inc. they can quickly join forces to improve their chances against major competitors like Netflix and Disney in streaming wars. According to multiple report, The two companies are in talks to merge Discovery’s reality TV empire with AT&T’s cable channel catalog and other media holdings to create a new entertainment entity.
AT&T and Discovery are in advanced stages of negotiations and an agreement could be reached by Monday, sources said in the Wall Street Journal Sunday. So far, companies have been discussing it several major players in AT&T’s WarnerMedia division, including CNN and its cable channels TNT and TBS. If they make a deal, AT&T shareholders will have a large stake in the new entity, according to the outlet. People familiar with the negotiations said Bloomberg an agreement could be announced just this week.
The tipsters who spoke with the two outlets did not disclose the terms of a potential deal and warned that these discussions could still unfold before an agreement could be reached. Both AT&T and Discovery declined to comment on the matter.
One thing is for sure, the two are certainly content enough to start a joint venture. AT&T’s cable empire includes CNN, HBO, Cartoon Network, TruTV and Cinemax, among others, with the Warner Bros. studio film list. Meanwhile, Discovery’s offerings include Food Network, TLC, and HGTV — some of the most binge-mere trash TV the cable has to offer (and I say that affectionately).
AT&T’s existing streaming channel, HBO Max, has subscribers constantly earned since his debut last May despite his chaotic launch, but has not seen the same explosive growth as Disney + he did in his freshman year. Discovery’s streaming service, Discovery +, is also fairly new on the scene, and they both face stiff competition from long-established services like Netflix. So the team can certainly give them an advantage.
On the other hand, AT&T could shoot in the foot here. He already plans to launch a more economical and ad-supported HBO Max level of June, which could deter existing subscribers from attacking with their more expensive plan. If people can also watch their favorite WarnerMedia programming on another streaming service like Discovery +, there’s one more reason for them. left to pay the full price for HBO Max. That’s how AT&T decided to undermine its own sales pitch.