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Discovery-WarnerMedia deal clears U.S. antitrust review -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – The Discovery, Inc. logo can be seen in the FAO Schwarz store in Manhattan, New York City, U.S.A, November 24, 2021. REUTERS/Andrew Kelly

(Reuters) – The plan of Discovery Media (NASDAQ:) Inc to buy the venerable WarnerMedia film and television studio has been approved by the U.S. Department of Justice. This means that closing is now possible.

In December, the European Commission granted unconditional antitrust clearance to the $43 billion transaction, announced in May. WarnerMedia parent AT&T (NYSE:) Corp has also received a letter from the Internal Revenue Service approving the merger’s tax-free status, another key requirement for the closing.

Discovery shareholders must approve the deal. The Newhouse family and John Malone, the investors in the deal already support it.

AT&T announced on Feb. 1 that it would spin off WarnerMedia to its shareholders, who will own 71% of the new Warner Bros. Discovery Company. The deal unwinds AT&T’s $85 billion purchase of Time Warner.

(This story is corrected in paragraph 2.

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