In 2022, Discovery and AT&T agreed to a $43 billion merger between AT&T’s Warner Bros. and Discovery. A shareholder complaint was filed in response, claiming that the transaction was unfair.
A few pension funds sued, claiming that the deal unfairly benefited certain high-end investors while harming others.
According to court documents filed last Friday and seen by Deadline, the two parties have reached an agreement through mediation to resolve the claim for $125 million.
According to the agreement, AT&T owns 71% of Warner Bros. Discovery, while the previous Discovery corporation owns the remaining 29%. With this acquisition, Discovery’s leadership team will govern the newly formed company.
This comes as AT&T has been spinning off pieces of its business to isolate itself from its media companies. This includes AT&T’s majority ownership of DIRECTV, which was split off into an independent corporation a few years ago.
AT&T has gradually detached itself from its media businesses while remaining the largest owner.
Radiant TV, offering to elevate your entertainment game! Movies, TV series, exclusive interviews, music, and more—download now on various devices, including iPhones, Androids, smart TVs, Apple TV, Fire Stick, and more.
