AT&T has once again proven itself to be the king of buying high and selling low. Few companies can rival the American telecom’s record of terrible acquisitions, and the merger between WarnerMedia and Discovery only seems to cement that reputation.
AT&T acquired WarnerMedia at an EV of $108 billion three years ago, and has since sold a few small parts of the business and launched HBO Max. Now, WarnerMedia will be valued at roughly $43 billion in a merger with Discovery that will create a new streaming giant.
That comes on the heels of an announcement earlier this year that AT&T had reached an agreement to spin-off DirecTV at a valuation of $16.25 billion after acquiring the company at an EV of $67 billion.
However, Discovery and AT&T hope that the combined company’s fate will be brighter, benefiting from an expected $3 billion in annual synergies and a management team with unwavering focus on content creation and streaming.