The $43 billion merger between WarnerMedia and Discovery will be bringing HBO Max and Discovery+ all under one umbrella streaming service. The new entity is reportedly known as Warner Bros. Discovery.
Merger Introduces Warner Bros. Discovery
According to the story by Engadget, the new merger will eventually blend the entertainment and reality programming, which could give Warner Bros. Discovery more chances to compete with competitors. Both Netflix and Disney+ already offer numerous content in both entertainment and reality.
Before they are able to merge the two, according to the publication, the company will most likely be offering a bundle for both of the services. To add, WarnerMedia has been able to launch CNN+, which is another streaming service.
Growth of HBO Max with 73.8 Million Subscribers
Just shortly before the merger was finalized, Jason Kilar, the CEO of WarnerMedia, announced that he would depart from the company, according to NYTimes. Kilar was reportedly behind the plan to use HBO Max to release all 2021 Warner Bros. movies at the same time that they would show in theaters amidst the pandemic.
As per Engadget, the move might have really paid off due to HBO Max and HBO having a massive 73.8 million subscribers in combination "at the end of 2021." According to Deadline, Kilar's departure, along with the departure of multiple WarnerMedia executives, makes it quite clear that the company will be getting a new leadership structure, as supported by Variety.
Merger Considered the Latest Massive Media Consolidation
The one running the company will be David Zaslav, the CEO of Discovery. To add, the merger will be the latest massive media consolidation after the most recent large consolidation being Amazon's purchase of MGM in March for a massive $8.45 billion with Disney also buying most of 21st Century Fox by spending $71.3 billion just a few years ago.
As per AT&T, WarnerMedia's owner, the new business will allow them to invest into creating more original content for its streaming services. The new merger will also help enhance the programming options across the company's broadcast channels and linear pay TV.
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AT&T's Take on the Merger of WarnerMedia and Discovery Plus
AT&T also noted that the new merger will allow them to offer more consumer choices as well as "more innovative video experience." According to The Verge, bundling and rebranding will help give consumers more choices citing an article by Gizmodo.
When it comes to competitors, Netflix currently has numerous offerings ranging from documentaries to movies and other series. With that, the merger between WarnerMedia and Discovery would allow the AT&T owned company to offer a range of content as well.
The Verge notes that the merger is expected to bring HBO Max and Discovery Plus together under a single service. As of press time, however, there are still no additional details regarding the expected singular streaming service.
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Written by Urian B.
