The merger of AT&T’s WarnerMedia and Discovery has cleared U.S. regulators, the companies announced Wed., in the last major hurdle for the $43-billion deal.
As per an SEC filing, “As of February 9, 2022, Discovery, Inc. (“Discovery”) and AT&T Inc. (“AT&T”) have satisfied the closing condition in Section 9.1(d)(i)of the Agreement and Plan of Merger (the “Merger Agreement”), dated as of May 17, 2021, by and among Discovery, AT&T, DrakeSubsidiary, Inc. and Magallanes, Inc. (“Spinco”) relating to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended(“HSR Act”). The HSR Act statutory waiting period has expired or otherwise been terminated, and any agreement not to consummate the transaction between the parties and the Federal Trade Commission or the Antitrust Division of the United States Department of Justice or any other applicable governmental entity, has also expired or otherwise been terminated.”
The clearance comes a bit sooner than expected. Discovery shareholder still need to approve the deal but that’s considered a done deal.
AT&T announced plans to spin off WarnerMedia last May, The combination that will result in a media powerhouse led by Discovery CEO David Zaslav sparked a flurry of consolidation and M&A speculation. The combined company will house two streaming services in Discovery+ and HBO Max, a storied film studio and cable networks including the recently embattled CNN. Wall Street and Hollywood have been eager to learn the particulars of the combined entity’s structure and leadership but Discovery legally has had to stay mostly mum until the deal closes.
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