The deal is unlikely to mean changes for customers of AT&T, HBO Max and Discovery+ in the short term. WarnerMedia is continuing with its plans to expand the service, including a launch in Latin America in June, and a rumored $10-a-month ad-supported version of HBO Max expected to be announced this week.
If the deal goes through, AT&T shareholders would own 71% of the new company, and shareholders of Discovery would own 29%. AT&T would get $43 billion in cash, debt securities, and WarnerMedia would retain certain debt. "When they acquired Time Warner, the vision was to have this kind of mega company that will have a seamless backbone between the content side and the broadband side," added CFRA analyst Tuna Amobi."That vision clearly has not panned out."