New Delhi, May 17 (IANS): AT&T and Discovery on Monday announced a definitive agreement to combine WarnerMedias premium entertainment, sports and news assets with Discovery's leading nonfiction and international entertainment and sports businesses to create a premier, standalone global entertainment company.

Under the terms of the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, AT&T would receive $43 billion (subject to adjustment) in a combination of cash, debt securities, and WarnerMedia's retention of certain debt. AT&T's shareholders would receive stock representing 71 per cent of the new company; Discovery shareholders would own 29 per cent of the new company.

The boards of directors of both AT&T and Discovery have approved the transaction.

A statement said companies with shared values, complementary assets and iconic brands and franchises will offer the most differentiated content portfolio in the world. Also, WarnerMedia and Discovery Inc. form one of the largest global streaming players.

The new company will compete globally in the fast-growing direct-to-consumer business -- bringing compelling content to DTC subscribers across its portfolios, including HBO Max and the recently launched discovery+.

The transaction will combine WarnerMedia's storied content library of popular and valuable IP with Discovery's global footprint, trove of local-language content and deep regional expertise across more than 200 countries and territories.

The new company will be able to invest in more original content for its streaming services, enhance the programming options across its global linear pay TV and broadcast channels, and offer more innovative video experiences and consumer choices.

The "pure play" content company will own one of the deepest libraries in the world with nearly 200,000 hours of iconic programming and will bring together over 100 of the most cherished, popular and trusted brands in the world under one global portfolio, including HBO, Warner Bros., Discovery, DC Comics, CNN, Cartoon Network, HGTV, Food Network, the Turner Networks, TNT, TBS, Eurosport, Magnolia, TLC, Animal Planet, ID and many more.

The new company will be able to increase investment and capabilities in original content and programming; create more opportunity for under-represented storytellers and independent creators; serve customers with innovative video experiences and points of engagement; and propel more investment in high-quality, family-friendly nonfiction content.

The companies announced that Discovery President and CEO David Zaslav will lead the proposed new venture with a best-in-class management team and top operational and creative leadership from both the companies.