The US telecommunications giant AT&T is close to reaching an agreement with Discovery to create a large digital content platform. It is not yet confirmed, as both firms would be negotiating the conditions, as reported by Bloomberg.

This deal would unite brands like HBO, HBO Max, TNT, CNN, Warner Bros with Animal Planet Discovery and TLC , among others. This supposes the entry of another player in a market in which gaining ground is becoming more and more complicated. The arrival of this giant entails for Netflix, Disney and Amazon Video the appearance of a new rival.

Main Objective Is to Increase At&t’s Content Offer

Above all, “It’s a content arms race and AT&T is making a strategic offensive move to fight Netflix, Disney and Amazon,” Dan Ives of Wedbush Securities told the BBC. The acquisition of Time Warner by AT&T in 2018 already revealed the first step to UK WhatsApp Number List double its presence in this field of digital content. It was at that time that he took over HBO, Cartoon Network, Warner Bros, TNT, TBS and CNN. The main purpose of this action was to create a giant that would combine content and distribution.

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However, this approach proved more expensive, as the company was also expanding its wireless services . In fact, AT&T recently poured $14 billion into its debt to fund this space. The aforementioned deal would be the latest move to reduce that debt.

As indicat by the Financial Times, this business, if it finally happens, could be valued at 150,000 million dollars. Currently, HBO and HBO Max have around 64 million subscribers worldwide. In conclusion,This means that it is being dwarfed by its bigger rivals, such as Netflix. Which has 208 million subscribers, and Disney+, which has more than 100 million. For its part, Discovery+, which was launched in January, has 15 million subscribers.

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