Member Mailing #263: The AT&T-Discovery Merger's Questionable Bet on Rebundling

The finances of the future merged company make sense, but it may take the direct-to-consumer relationship for granted

Key Takeaways

• In merging with WarnerMedia, Discovery Chairman and CEO David Zaslav appears to have follow Barry Diller’s advice was to “go big” and to “own nonfiction programming and be an essential streaming service”.

• With projected ~$52B in revenues, ~$15B in pretax profit, and free cash flow of $20B by 2023, the business will be robust out of the gate.

• …