AT&T is in talks to combine content assets with Discovery

AT&T Inc. is in talks to combine content assets with Discovery Inc. in a deal that could create a entertainment giant to better compete with Netflix Inc. and Walt Disney Co., people with knowledge of the matter said.

Discussions are ongoing and there’s no certainty they will lead to a transaction, the people said, asking not to be identified because the information is private.

Any deal would mark a major shift in AT&T’s strategy after years of work to combine telecommunications and media assets under one roof. AT&T gained some of the biggest brands in entertainment through its acquisition of Time Warner Inc., which was completed in 2018.