AT&T close to deal to combine media empire with Discovery: Reports

U.S. telecoms giant AT&T Inc is nearing a deal to combine its media assets, including CNN and HBO, with Discovery Inc, the owner of lifestyle TV networks such as HGTV and TLC, according to news reports citing unnamed sources.

The deal would mark the unwinding of AT&T’s $108.7 billion acquisition of U.S. media conglomerate Time Warner in 2018, and it would underscore its recognition that TV viewership has moved to streaming, where scale is required to take on the likes of Netflix Inc and Walt Disney Co.

The combination would create a new company separate from AT&T that could be valued at $150 billion, including debt, the Financial Times reported. Discovery currently has a market value including debt of about $30 billion.