AT&T, in Abrupt Turn, Will Shed Media Business in Deal With Discovery

Even with increased competition, HBO remains a standout in television, and last year, once again, captured more Emmys than any other network, studio or platform, including Netflix. It has several hit shows, including “Succession,” “Curb Your Enthusiasm,” “Barry” and “Last Week Tonight With John Oliver.” It also has a huge library that includes “The Sopranos,” “Game of Thrones” and “Sex and the City.”

The Warner Bros. TV studio likewise has produced successful shows for both its parent company, WarnerMedia, and outside studios with series like “Ted Lasso” (Apple TV+), “Riverdale” (CW), “The Flight Attendant” (HBO Max) and “The Bachelor” (ABC). The Warner Bros. movie studio recently released movies like “Godzilla vs. Kong,” “Mortal Kombat” and has big coming releases like “Dune” and “The Matrix 4.

Several Wall Street analysts lauded the deal, and one suggested there might yet be a fight for some of these assets.

“One is left wondering whether there is more of the story yet to come,” Craig Moffett, co-founder of Wall Street research firm MoffettNathanson, wrote in a note Monday morning. “What now for Comcast, for example?”

The cable giant is unlikely to make a play for CNN or the Warner Bros. studio, “but one could argue that HBO is a must-have,” he said. “There are potential other parties who may feel the same.”

Brooks Barnes and Lauren Hirsch contributed reporting.

Article source: https://www.nytimes.com/2021/05/17/business/att-discovery-merger.html