AT&T is planning to spin off its media business and merge it with Discovery Inc. , according to people familiar with the matter, Bloomberg reported.
A deal could be announced as soon as this week, according to the people, who asked not to be identified (Bloomberg report). The transaction will reportedly be structured as a Reverse Morris Trust, or a merger with another company that’s structured to be tax-free.
The reported deal will combine Discovery’s reality-TV business with AT&T’s media holdings. The merger could potentially be a competitor to entertainment giants Netflix Inc. and Walt Disney Co.
AT&T acquired some of the biggest brands in entertainment through its acquisition of Time Warner Inc., which was completed in 2018.
Discovery meanwhile is available in 220 countries and territories, and owns brands like Food Network Kitchen, MotorTrend OnDemand, Group Nine Media, Discovery Channel, Travel Channel, MotorTrend, Science Channel and the Oprah Winfrey Network.