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AT&T Is Preparing to Merge Media Assets With Discovery

  • WarnerMedia businesses would merge with reality-TV giant
  • Companies control networks ranging from HBO to Animal Planet
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WATCH: AT&T Inc. is said to be in talks to spin off its media business and merge it with Discovery Inc. Su Keenan reports.(Source: Bloomberg)
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AT&T Inc. is preparing to spin off its media business and merge it with Discovery Inc. in a tax-friendly deal, according to people with knowledge of the matter, a surprise reversal for a company that spent $85 billion to acquire the assets less than three years ago.

A deal could be announced as soon as this week, said the people, who asked not to be identified because the information is private. The transaction will be structured as a so-called Reverse Morris Trust, or a merger with another company that’s structured to be tax-free, one of the people said.