(WASHINGTON) – New American streaming and media giant Warner Bros Discovery was born on Friday after the completion of the multibillion-dollar merger of entertainment groups WarnerMedia and Discovery.
Competing with industry leaders like Netflix and Disney, Warner Bros Discovery brings together one of the largest content libraries in the market and over a hundred storied brands spanning television, film and news including HBO, CNN, DC Comics and Eurosport.
The merger valued at about 43,000 million dollars has passed a regulatory process since the operation was announced in May of last year, which has led to the separation of WarnerMedia from the AT&T telecommunications group.
AT&T bought WarnerMedia for about $85 billion in 2018 and subjected the conglomerate formerly known as Time Warner to restructuring and leadership changes, something interpreted as a failed strategy.
The new company led by David Zaslav, who has been at the helm of Discovery for 15 years, confirms the trend towards concentration in the entertainment sector, also coveted by the big technology companies.
In a statement, Zaslav highlighted the importance of the merger for shareholders, distributors, advertisers, creative partners and consumers around the world, as well as predicting “impact stories” will be produced.
Executives at the combined companies projected 2023 revenue of $52 billion, gross profit of $14 billion and cost savings of $3 billion annually, which may mean cutbacks.
Warner Bros Discovery is expected to begin trading on Wall Street next Monday under the ticker “WBD” on the Nasdaq Composite Index, the merged companies announced.
