OT: Big Mergers as streaming world continues to evolve
AT&T to spin off and combine WarnerMedia with Discovery in deal that would create streaming giant
The streaming TV race is about to get even more competitive.
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.Discovery CEO David Zaslav will run the combined business, according to Monday's announcement.
"I think we fit together like a glove," Zaslav said at a virtual press conference.
On one level, the tie-up is a logical way to better compete with Netflix and Disney, the two top streaming players.
AT&T's shareholders would get the majority of the shares in the combined company, at 71%, while Discovery's shareholders would get 29%.
Shares of AT&T were up more than 3% pre-market, while shares of Discovery were up 16%.
Prominent Wall Street analysts had been predicting, and in some cases encouraging, this type of move. Earlier this year AT&T struck a deal to carve out its satellite business DirecTV at a significant loss from the 2015 purchase price.
And another telecom giant, Verizon, threw in the towel on its content efforts as well, agreeing to sell Yahoo and AOL for $5 billion.
Of course, the media world looks very different today than it did just a few years ago. Investors are more laser-focused on streaming with each passing year.
"We are now in a world where relevance and future success will be tied to greater scale and growth globally," AT&T CEO John Stankey said in a memo to WarnerMedia staffers. "To be one of the best global media companies requires not only broad and deep creative assets, but an investor base and access to capital to make it happen. The decision to combine WarnerMedia with Discovery is rooted in this conclusion."
Discovery's nonfiction-focused streaming service launched in January, utilizing a library of shows from channels like TLC and Animal Planet. At the time, Zaslav told CNN that discovery+ was a "great complement to someone who has Disney or Netflix, or HBO, Disney and Netflix."
When CNN's chief business correspondent Christine Romans asked how many streaming services Americans would end up having, Zaslav said, "I think people will have three or four."
Zaslav also emphasized Discovery's global reach. HBO Max, currently available in the US, is about to make an international push. Stankey said the combination will support HBO Max's global growth "and create efficiencies which can be re-invested in producing more great content to give consumers what they want."
Zaslav said Discovery and Warner currently spend a total of $20 billion a year on content. Netflix plans to spend at least $17 billion on content this year.
https://www.cnn.com/2021/05/17/media/warnermedia-discovery-deal/index.html
Hurry-up Vikings, we ain't getting any younger!
Good move by AT&T if Fed's approve. They need to clean-up some past decisions and work down debt too.
My concern is more consolidation in this space.
We wont watch commercials anymore, we like the convenience of pausing live tv and like the DVR functionality in general.
Getting so close to to totally cutting the satellite/cable cord. App's like LoCast can get most people all their locals streamed.
YouTube gets you cloud based DVR, might need to look into that more one day.
so between ATT and Health Insurance... what will we have left to live on?
I dont like all the consolidation, cutting the cord was supposed to be a way to save money, but these streaming services are ending up to be just as much as the dish providers were and you have to run a more expensive internet package to be able to stream at the higher qualities so I am not really sure we are getting ahead by cutting the cord.
Good points Jimmy...
Must haves for us are:
Netflix
Prime
Also really like today:
Discovery+
HBO Max
Hulu
I could justify this during a Pandemic when we're stuck home, but tomorrow???
There are some bundles I have to explore. Disney+ we're on free trial with and wont be upping to renew once they start charging.
@"purplefaithful" said: Good points Jimmy...Must haves for us are:
Netflix
PrimeAlso really like today:
Discovery+
HBO Max
HuluI could justify this during a Pandemic when we're stuck home, but tomorrow???
There are some bundles I have to explore. Disney+ we're on free trial with and wont be upping to renew once they start charging.
we are getting ready to drop the dish (as soon as we are caught up on our DVRd stuff) but I am not sure if I want ATT or our local rural internet provider has a TV package for about the same money that also has FSN or Balleys i gues its called now. that is the key for me is getting my Wild and Twins and the only streaming service that offers it is our local provider and ATT. I am sure I am going to lose some stuff, but my dish bill is close to $150 now and its just not worth it considering we also have Netflix, Prime, and Hulu... although I have never watched Hulu, but the kids do.
I thought this was going to be about dry cleaning companies merging...
@"Wetlander" said: I thought this was going to be about dry cleaning companies merging...With the way the world is today?
That would probably raise hackles too...
Amazon buys MGM in a mega media deal
"The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM's talented team. It's very exciting and provides so many opportunities for high-quality storytelling," he added.
The two companies said that the completion of the deal "is subject to regulatory approvals and other customary closing conditions."
MGM and 007
Although MGM's logo of a roaring lion has played in front of some of Hollywood's most beloved films, including "The Wizard of Oz," it doesn't have the deep franchise bench that other studios have.
So why would Amazon want MGM? Three words: Bond, James Bond.
The studio owns a piece of the spy franchise, one of Hollywood's most famous film series. The Bond brand, which Eon Productions also controls, is more than a box office success story racking up billions of dollars over the past 60 years. The films and their lead character also represent a lifestyle that branches out to all parts of the globe and pop culture. If Prime Video is the new home of James Bond, that's an alluring proposition for potential consumers.
Plus, "No Time to Die," the latest Bond film, is set to open this October after being delayed multiple times because of the Covid-19 pandemic.Away from the suave British spy, MGM also houses franchises including "Rocky," "The Handmaid's Tale," "RoboCop," "Legally Blonde" and the Epix TV network.
A consolidating media industry
But the simplest reason Amazon wanted to buy MGM is that it can afford to.
The hefty price tag for the acquisition is nothing of significant consequence for Amazon, one of the world's wealthiest companies. Amazon, which paid nearly $14 billion for Whole Foods in 2017, has a market cap of $1.7 trillion.Ultimately, the deal gives Amazon more content, a respected studio in Hollywood and a stylish super spy. That will only help it further compete in the ruthless world of streaming.
https://www.cnn.com/2021/05/26/media/amazon-mgm-deal/index.html
@"JimmyinSD" said: so between ATT and Health Insurance... what will we have left to live on?I dont like all the consolidation, cutting the cord was supposed to be a way to save money, but these streaming services are ending up to be just as much as the dish providers were and you have to run a more expensive internet package to be able to stream at the higher qualities so I am not really sure we are getting ahead by cutting the cord.
Yea and they will await regulation...like there is any. We are a country run by corporate monopolies and Corporations have individual rights now as well ever since the Supreme Court was bought off. All under the guise of Citizens United the exact opposite of Citizens being United. It is Corporate United.
@"JimmyinSD" said: so between ATT and Health Insurance... what will we have left to live on?I dont like all the consolidation, cutting the cord was supposed to be a way to save money, but these streaming services are ending up to be just as much as the dish providers were and you have to run a more expensive internet package to be able to stream at the higher qualities so I am not really sure we are getting ahead by cutting the cord.
I was a loyal Direct TV Customer for 25+ years until I had enough with the constant rate game battle so I completely agree about the rate creep with these streaming services. Moved to Playstation Vue and loved it before they shut down, and now I'm streaming an IPTV provider through my Nvidea Shield. Incredible deal for thousands of channels including PPV. Still use Netflix(free with TMobile), Prime, Plex for the majority of my content to keep my monthly content spend to around $25 before internet service costs.
We have netflix and prime and borrow disney and hulu.
At some point its just easier to sail the seven seas and get your media from the internet.
it sucks the biggest concern I have is the consolidition of news information and censoring. when you only have a couple corporate sources of info in bed with the government crafting the narrative of events its scary.
@"PSBLAKE" said: it sucks the biggest concern I have is the consolidition of news information and censoring. when you only have a couple corporate sources of info in bed with the government crafting the narrative of events its scary.
Meh...Most Americans are smart enough to see through it.
@"PSBLAKE" said: it sucks the biggest concern I have is the consolidition of news information and censoring. when you only have a couple corporate sources of info in bed with the government crafting the narrative of events its scary.
Plenty of trusted alternative news sources to get your information from than the corporately controlled lying mainstream media on TV.
@"TBro" said:@"PSBLAKE" said: it sucks the biggest concern I have is the consolidition of news information and censoring. when you only have a couple corporate sources of info in bed with the government crafting the narrative of events its scary.
Plenty of trusted alternative news sources to get your information from than the corporately controlled lying mainstream media on TV.
Yea and plenty of alternative biased news sources who are being controlled by the big corporate behind the scenes to push an agenda
@"minny65" said:@"TBro" said:@"PSBLAKE" said: it sucks the biggest concern I have is the consolidition of news information and censoring. when you only have a couple corporate sources of info in bed with the government crafting the narrative of events its scary.
Plenty of trusted alternative news sources to get your information from than the corporately controlled lying mainstream media on TV.
Yea and plenty of alternative biased news sources who are being controlled by the big corporate behind the scenes to push an agenda
True. As always, use discernment and do your own research before trusting the opinions of others.
@"TBro" said:@"minny65" said:@"TBro" said:@"PSBLAKE" said: it sucks the biggest concern I have is the consolidition of news information and censoring. when you only have a couple corporate sources of info in bed with the government crafting the narrative of events its scary.
Plenty of trusted alternative news sources to get your information from than the corporately controlled lying mainstream media on TV.
Yea and plenty of alternative biased news sources who are being controlled by the big corporate behind the scenes to push an agenda
True. As always, use discernment and do your own research before trusting the opinions of others.
so what do you think... can we trust minny?
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