Reuters reported on Tuesday that Discovery Chief Executive David Zaslav made the announcement during a meeting with WarnerMedia employees at the Warner Bros. studio lot in Burbank.
Zaslav will lead the proposed new company. The deal is expected to close in mid-2022, pending regulatory and shareholder approvals.
The Dallas-based telecommunications giant will receive $43 billion for its media assets, which includes Warner Bros. Entertainment and streaming service HBO Max, both based in Burbank. Under terms of the deal, AT&T shareholders would own 71 percent of the new company, while Discovery shareholders would own 29 percent.
AT&T acquired Time Warner Inc. in 2018 and changed its name to WarnerMedia.
Zaslav said in a statement at the time the deal was announced that he was excited to combine such historic brands, world class journalism and iconic franchises under one roof and unlock so much value and opportunity.
“With a library of cherished IP, dynamite management teams and global expertise in every market in the world, we believe everyone wins ... consumers with more diverse choices, talent and storytellers with more resources and compelling pathways to larger audiences, and shareholders with a globally scaled growth company committed to a strong balance sheet that is better positioned to compete with the world’s largest streamers,” Zaslav said.