AT&T and Discovery have gained clearance for their much-anticipated deal to spin off WarnerMedia so it can merge with Discovery, a deal that has already been approved in Europe. The approval of Discovery shareholders is the last barrier to the deal moving forward.
The companies disclosed the matter in two different filings Wednesday with the U.S. Securities and Exchange Commission. The transaction is still expected to close in the second quarter.
“The HSR Act statutory waiting period has expired or otherwise been terminated, and any agreement not to consummate the transaction between the parties and the Federal Trade Commission or the Antitrust Division of the United States Department of Justice or any other applicable governmental entity, has also expired or otherwise been terminated,” AT&T and Discovery each said in their respective filings.
The European Commission approved the deal in December.
AT&T shareholders are not required to sign off on the pact. Last week, AT&T announced that its board has decided to spin off the telco’s interest in WarnerMedia — rather than structure the media conglom’s divestiture as a split-off.
Under the pact, Discovery will gain control of WarnerMedia, adding the Warner Brothers studio, the TNT and TBS cable networks, CNN and HBO to its stable. The new merged company will be called Warner Bros. Discovery and extends the reach of its CEO, Discovery’s David Zaslav, much further into the world of U.S. sports, news and entertainment. Discovery has primarily focused on unscripted programming, but it will soon have oversight of everything from NBA basketball broadcasts to HBO favorites like “Last Week Tonight With John Oliver.” Investors remain curious about the company’s ultimate streaming strategy, as the new company will operate both HBO Max and Discovery Plus, as well as CNN Plus, a streaming video hub affiliated with the large news network slated to launch in weeks to come.
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