[Asia Economy Reporter Kwon Jae-hee] American telecommunications company AT&T, owner of WarnerMedia, is reportedly discussing a merger with cable TV channel operator Discovery, according to foreign media on the 16th (local time).
According to Bloomberg and others on the same day, AT&T is known to be discussing a plan to merge its content division, including WarnerMedia, with Discovery.
In 2018, AT&T acquired Time Warner (the predecessor of WarnerMedia), gaining a strong entertainment brand. Last year, WarnerMedia launched the streaming service HBO Max, entering the online streaming service (OTT) market.
Discovery, which specializes in producing various reality and documentary programs, recently entered the OTT market late by launching Discovery Plus.
Bloomberg analyzed, "AT&T and Discovery aim to build a strong business model through their merger that can compete with Netflix and Disney."
CNBC reported, "Merger negotiations are ongoing privately and could be announced as early as tomorrow," adding, "Since the merger discussions have not reached a final agreement, there is still a possibility of failure."
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