AT&T-Discovery deal puts pressure on streaming video rivals


FILE PHOTO: The AT&T logo is seen on a monitor on the floor of the New York Stock Exchange (NYSE) in New York City, U.S. June 13, 2018. REUTERS/Brendan McDermid

(Reuters) - AT&T Inc's $43 billion deal on Monday to spin out its WarnerMedia business and combine it with Discovery Inc was among the most ambitious yet in the streaming era. Media bankers and analysts said it will not be the last.

The agreement adds Discovery's 15 million subscribers to the 64 million subscribers that WarnerMedia's HBO Max has globally. The size of the subscriber base drives revenue and the budget for new content.

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