Discovery announced Friday that their stockholders have approved their merger with WarnerMedia to create Warner Bros. Discovery.
The new company will combine WarnerMedia’s entertainment, sports, and news content with Discovery’s nonfiction, international entertainment, and sports businesses.
According to Deadline, the Warner Bros. Discovery merger won’t be finalized until April, but this announcement means the two companies can now start discussions about management structure and the organization of the businesses.
They will also figure out how this merger will affect the two companies’ streaming services, like CNN+, which will launch March 29.
The $43 million merger will create a huge new player in the entertainment world, with 200,000 hours of programming and 100+ channels, including HBO, Warner Bros., Discovery, DC, CNN, WB Games, Turner Sports, Cartoon Network, HGTV, Food Network, TNT, TBS, Turner Classic Movies, Wizarding World, Adult Swim, Eurosport, Magnolia, TLC, Animal Planet, and ID.
As Discovery and WarnerMedia continue their merger process, executives assured investors that they will not overspend on content.
“Our goal is to compete with the leading streaming services, not to win the spending war,” Discovery CEO David Zaslav told Deadline.
The concerns about overspending come after lower-than-projected streaming numbers spooked Wall Street investors. Netflix is forecasting low subscriber growth in the coming months and Paramount Global (formerly ViacomCBS) are fielding worries about cash flow.
Zaslav is confident about Discovery and WarnerMedia’s financial future, noting that Discovery has a strong cash flow. He does anticipate more spending, but says it will be done cautiously: “You’re not going to hear us say we are going to spend $5 billion more” than the projected budget.
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