AT&T signs deal to combine media biz with Discovery

U.S. telecom giant AT&T Inc. has signed a deal to combine its media business, including CNN, with Discovery Inc., the owner of such lifestyle networks as the Food Network and HGTV

NEW YORK -- AT&T will combine its massive media operations that include CNN HBO, TNT and TBS in a $43 billion deal with Discovery, the owner of lifestyle networks including the Food Network and HGTV. Faced with cord-cutting and incursions by streaming services, major broadcast media companies have retrenched and sought strength through mergers. The deal announced Monday would create a separate media company with households increasingly abandoning cable and satellite TV, looking instead at Netflix, Amazon Prime Video, Facebook, TikTok and YouTube. In the all-stock deal, AT&T will receive $43 billion in a combination of cash, debt securities, and WarnerMedia’s retention of certain debt. AT&T shareholders will receive stock representing 71% of the new company and Discovery stockholders will own 29% of the new company. The transaction is considered a