WBD: Warner Media, Discovery complete their merger

AT&T Inc.’s WarnerMedia unit and Discovery Inc. have completed their merger, the companies have said.

The combined company, Warner Bros Discovery Inc., will start trading on the Nasdaq on Monday under the ticker symbol "WBD".

In May last year, the companies set out to merge and become a standalone media business, with AT&T aiming to focus more on its wireless ambitions and Discovery looking to beef up its content library.

"With the close of this transaction, we expect to invest at record levels in our growth areas of 5G and fiber, where we have strong momentum," AT&T Chief Executive Officer John Stankey said in a statement on Friday.

Warner Bros Discovery's portfolio includes Discovery Channel, Warner Bros. Entertainment, CNN, HBO, Cartoon Network; streaming services Discovery+ and HBO Max; and franchises like "Batman" and "Harry Potter".

A top priority for David Zaslav, the long-time Discovery veteran leading the combined entity, is to make streaming video as profitable as the old TV business, analysts said.

"Today's announcement marks an exciting milestone not just for Warner Bros. Discovery but for our shareholders, our distributors, our advertisers, our creative partners and, most importantly, consumers globally," said Zaslav.

Zaslav had earlier said the combined company will put $20 billion per year toward new content, a number rivaling Netflix and exceeding Disney Plus, and that he hopes to eventually reach 400 million homes.

Discovery On Thursday announced the executive team to lead the new Warner Bros Discovery (WBD), leaning heavily on a trusted group of lieutenants, many of whom have worked with its chief executive since his days at NBC.

Nine high-level WarnerMedia executives, including Chief Executive Jason Kilar and Studios and Network chief Ann Sarnoff, announced their exits ahead of the formation of the combined company earlier this week.