Is AT&T Giving Up on HBO Max?
The wireless giant is in talks to spin off the media group that was supposed to be its future, part of $170 billion in failed deals it is unwinding this year.
AT&T’s ill-fated blockbuster Time Warner takeover may now be set for a blockbuster breakup.
Photographer: Emma McIntyre/Getty Images for WarnerMedia
AT&T Inc. has spent more than four years struggling to explain its rationale for buying Time Warner Inc. and later creating HBO Max, a remarkable strategic shift that launched the ultra-profitable wireless carrier into the ultra-unprofitable world of streaming TV. It seems AT&T’s argument wasn’t strong enough to convince even itself as it now appears ready to give up on that plan.
Dallas-based AT&T is in talks to combine its WarnerMedia division, as the entertainment business is now called, with reality-TV programmer Discovery Inc., Bloomberg News reported Sunday. The explosive development comes as AT&T Chief Executive Officer John Stankey sells off a slew of assets that were acquired under his predecessor, Randall Stephenson, in an effort to reduce debt and redirect resources to its 5G wireless network.