Write an article about the recent AT&T ’s Warner Media and Discovery, Inc.

Write an article about the recent AT&T ’s Warner Media and Discovery, Inc. merger announced in May 17, 2021 In the News section of AT & T’s website. According to the article, combining the assets Warner Media offers (premium entertainment, sports and news media) with Discovery’s already globally-known entertainment business will increase revenue of approximately $52B. In addition, it will increase EBITDA approximately $14B and a leading cash flow rate of nearly $60%. (AT&T 1)
AT&T Inc. and Discovery, Inc. are already in the media industry but are looking to get more involved with the streaming services and because the business share a few synergies, the expenses will be less when introducing a new layer of corporate oversight to manage. (Bragg 2)
The merger of these two industries opens Geographic growth and Marketing opportunities as they move into the streaming DTC (direct-To-consumer) business globally. (Bragg 2) This will create competition with other local broadcasters and open the doors to unknown story tellers and independent creators. (AT&T 1)
I believe the two companies made a good decision to merge. AT&T and Discovery are both strong media entertainment companies with a high ROE profile. Since each company brings strong assets and shares few synergies, the Synergy Strategy approach will bring greater profitability. ( (Bragg 3)
The deal seems fair as Discovery will be paying WarnerMedia, AT&T $43B which includes cash, debt securities and retention of WarnerMedia’s debt. (AT&T 1) This is beneficial to the seller WarnerMedia, AT&T’s shareholders as they do not need to pay income taxes until they receive the debt payments, allowing the acquirer 100% profit from any stock appreciation. (Bragg 4) and according to the article,Discovery shareholders will own 29% of the new company.
One of the biggest risks identified due to the transaction payment type of taking on WarnerMedias’ debt, If Discovery were to enter into a bankruptcy, MediaWarne’s shareholders will be liable to pay the debt and as they become debt holders rather than shareholders, they will not have a right to vote for a new board of directors and will lose control over the business. (Bragg 4)

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