AT&T Inc (NYSE: T) created a new company by spinning off its Warner Media and integrating it with Discovery Communications Inc (NASDAQ: DISCA). David Zaslav, CEO of Discovery, will head the new company.
The new entity will include Discovery’s businesses such as HGTV and Food Network. It will also comprise Warner’s Warner Brothers Studios, CNN, and HBO Max. The new company will compete with Disney and Netflix.
AT&T took over Time Warner in 2016 to expand into programming beyond the Internet and wireless services. The whole deal is $109 billion, including the debt of Time Warner.
The new company receives $43 billion
With this deal with Discovery, AT&T unwinds its deal with Time Warner. The new company will receive funding of $43 billion, including securities, debt, and cash. It will also hold a debt of $55 billion.
Following the deal, the shares of Discovery opened higher at 10%. It is on the assumption that Discovery will become one of the biggest players in Hollywood. The shares of AT&T also jumped 4% because the company could focus on its core business. However, both the stock lost their sheen and ended in red on that day. Discovery stock lost around 12% by the end of the week.
Introduces cybersecurity solution
AT&T, on May 20, 2021, introduced an economical cybersecurity solution called AT&T Threat Detection and Response, which is approved Fed, for government agencies.
AT&T operates the largest wireless network in the US. The telecom services company also provides various services such as protection against digital threats.
The public sector agencies could utilize the Fed-approved cybersecurity solution to protect against cyber threats.
Public sector agencies handle sensitive data besides supporting essential infrastructure. They face cyber threats frequently.
AT&T’s AVP (Product Marketing Management), Brandon Pearce, said the federal and state departments and agencies need an effective threat detection/ response solution because they seek to modernize their systems and utilize cloud computing.
AT&T developed Threat Detection and Response using its USM (Unified Security Management) platform for government agencies. Its solution comprises incident response, threat detection, and compliance management.
AT&T developed its product embracing Amazon’s cloud. However, they can use the product on Google and Microsoft cloud environments.