A la carte starting to consolidate

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On Monday morning AT&T (T) and Discovery, Inc. (DISCA)announced a deal under which AT&T's WarnerMedia will be spun off and combined with Discovery in a new standalone media company.

The deal, subject to regulatory approval, will combine two treasure troves of content, including the HBO Max and discovery+ streaming services. CNN will be included in the transaction.

Yup, so a spinoff that consolidates media. I presume this means their media is never going elsewhere.

A spin-off will help AT&T prioritize its broadband business and pay down its huge debt load. "AT&T would receive $43 billion (subject to adjustment) in a combination of cash, debt securities, and WarnerMedia's retention of certain debt," Monday's announcement said. Zaslav said Monday the new company will start with $55 billion in debt.

$55 billion in debt... to start off! AT&T spins off a company to get money infusion, which is paid for with debt. Gotta love America!

 

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If this means I will no longer get HBOmax for free, it is going to be hard to justify keeping it or gig Fiber.