AT&T and Discovery to collaborate on Warner Media
AT&T in conjunction with Discovery is developing the next big thing in the streaming services industry.
Telecommunications company, AT&T is partnering with major media companies, Discovery and Warner Bros Entertainment to launch WarnerMedia, a new streaming services business.
The collaboration is in a bid to enable WarnerMedia to achieve the goal of being an all-encompassing streaming service that houses top-notch movies from Warner Bros as well as everyday relatable shows on Discovery.
AT&T Chief Executive Officer said:
‘This agreement unites two entertainment leaders with complementary content strengths and positions the new company to be one of the leading global direct-to-consumer streaming platforms. It will support the fantastic growth and international launch of HBO Max with Discovery’s global footprint and create efficiencies which can be re-invested in producing more great content to give consumers what they want.’
The current agreement between both companies is that AT&T receives $43 billion with its shareholders having 71% of WarnerMedia while Discovery’s shareholders receive 29%.
Although the reaction of shareholders to this division is unknown, many have predicted that most shareholders will not be pleased with it.