Discovery Names Combined Company "Warner Bros. Discovery"

Discovery Inc. (DISCA, DISCB,DISCK) on Tuesday revealed the new name of the global entertainment company evolving from the merger between WarnerMedia and Discovery. The name of the standalone company has been decided as "Warner Bros. Discovery."

Discovery President and Chief Executive Officer, David Zaslav, who is also the future CEO of the proposed combined company, unveiled the new name to WarnerMedia employees at the Warner Bros. studios.

Commenting on the developments, Zaslav said, "We love the new company's name because it represents the combination of Warner Bros.' fabled hundred year legacy of creative, authentic storytelling and taking bold risks to bring the most amazing stories to life, with Discovery's global brand that has always stood brightly for integrity, innovation and inspiration. There are so many wonderful, creative and journalistic cultures that will make up the Warner Bros. Discovery family. We believe it will be the best and most exciting place in the world to tell big, important and impactful stories across any genre - and across any platform: film, television and streaming."

Earlier in May, AT&T Inc. (T) and Discovery announced a deal, under which WarnerMedia's premium entertainment, sports and news assets will be combined with Discovery's nonfiction and international entertainment and sports businesses.

The agreement is structured as an all-stock, Reverse Morris Trust transaction, under which WarnerMedia will be spun or split off to AT&T's shareholders via dividend or through an exchange offer or a combination of both and simultaneously combined with Discovery.

In connection with the spin-off or split-off of WarnerMedia, AT&T would receive $43 billion, subject to adjustment, in a combination of cash, debt securities, and WarnerMedia's retention of certain debt.

The transaction is anticipated to close in mid-2022. In the new entertainment company, AT&T's shareholders would receive stock representing 71 percent, while Discovery shareholders would own 29 percent of the new company. The Boards of Directors of both AT&T and Discovery have approved the transaction.

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