AT&T to Spin Off CNN, HBO to Discovery in $43 Billion Deal

AT&T and Discovery Inc. announced a deal Monday in which AT&T's WarnerMedia — which includes CNN HBO, TNT and TBS — will be spun off and combined with Discovery in a new standalone media company, CNN reports.

The spinoff — less than three years after AT&T acquired Time Warner Inc. for $85.4 billion — results from a $43 billion deal with Discovery, the owner of lifestyle networks including the Food Network and HGTV.

Faced with cord-cutting and incursions by streaming services, major broadcast media companies have retrenched and sought strength through mergers.