WarnerMedia CEO was reportedly 'kept in the dark' about $43 billion Discovery merger
WarnerMedia CEO Jason Kilar is reportedly eyeing an exit after the announcement of the company's merger with Discovery — which he reportedly only found out about recently. Kilar has "hired a legal team to negotiate his departure" as chief executive of WarnerMedia, a job he has held for about a year, The New York Times reported on Monday. The news came only hours after AT&T said it would spin off WarnerMedia, which owns HBO, Warner Bros., CNN, and more, and merge it with Discovery to create a new standalone company run by Discovery CEO David Zaslav. The idea was that the combined company would be better positioned to compete against the likes of Disney and Netflix, and Discovery's brands include HGTV, Food Network, and Animal Planet. The deal is expected to be finalized next year. But Kilar, the Times reports, was "kept in the dark about the deal until recent days." Zaslav told reporters on Monday that he and AT&T CEO John Stankey had met "secretly" over the past few months. Kilar's name was not mentioned in the AT&T press release announcing the $43 billion deal, and the Times reports that when Kilar sent a memo to employees about the "momentous news," he didn't mention anything about his future at the company. Kilar took over as the head of WarnerMedia in May 2020 after previously serving as Hulu's CEO. HBO Max, the new WarnerMedia streaming service, launched later that month. Kilar's reported plans to exit were revealed only three days after The Wall Street Journal published a profile of him, which described how he has "led one of the most radical overhauls in the entertainment industry" and opened by saying, "Jason Kilar might have a career as a tour guide if this WarnerMedia chief executive gig doesn't work out for him." More stories from theweek.com7 scathingly funny cartoons about Liz Cheney's ousterThe U.S. still has stricter mask policies for kids than EuropeFormer child star Ricky Schroder apologizes to Costco worker 'if I hurt your feelings' after mask confrontation
news.yahoo.comThe winners and losers of AT&T's split with WarnerMedia
AT&T is unwinding a huge part of its $84 billion acquisition of Time Warner, less than three years after it closed.Driving the news: AT&T this morning announced that it will merge its WarnerMedia properties with Discovery Inc.'s media assets.Stay on top of the latest market trends and economic insights with Axios Markets. Subscribe for freeAT&T's contributions will include cable networks CNN, TNN, TNT, Cartoon Network and HBO, plus streaming service HBO Max. Discovery's will include its Discovery-branded content, TLC, Food Network, Eurosport and its Discovery+ streaming service.The deal is expected to close in the middle of next year, via a joint venture that would have projected 2023 revenue of $52 billion and adjusted EBITDA of around $14 billion.The big winner is Elliott Management, the activist investor which last year took a $3.2 billion stake in AT&T and publicly argued that the Time Warner acquisition didn't make strategic sense.Elliott later signed a ceasefire with new AT&T CEO John Stankey, who agreed to spin off DirecTV via a deal with TPG Capital.There were reports in November that Elliott divested its AT&T stake, but my understanding is that it just sold off its small amount of common stock, but maintain most of its swaps. It subsequently purchased new common stock, to be reflected in a 13F being filed today.It does not appear that AT&T reached out to private equity firms to help buttress the deal.The big loser is former AT&T CEO Randall Stephenson. Not only were Time Warner and DirecTV his two biggest acquisitions, but his failed pursuit of T-Mobile triggered a massive termination fee that financially strengthened a smaller rival and arguably caused AT&T to sell off wireless spectrum.The big comp is Verizon, which also has a (relatively) new CEO who views networking as the crown jewel and content as a pricey distraction.The big note is how rushed this morning's announcement felt, despite some background insistence that it wasn't, per Axios media reporter Sara Fischer.They didn't announce the new company's name, instead saying they'll drop it "later this week."No disclosed decisions yet on if the two streaming services will be merged.Reporters had 30 minutes notice this morning of the Zoom call.No clarity on the future of WarnerMedia boss Jason Kilar, who was notably absent from the press release. Stankey simply said that Discovery CEO David Zaslav — who will run the new business — has lots of discussions ahead of him. The bottom line: Two things you can always count on after acquiring Time Warner are big controversy and big regrets.Like this article? Get more from Axios and subscribe to Axios Markets for free.
news.yahoo.comWarner Media CEO Jason Kilar explains why the company raised guidance on HBO subs
Warner Media CEO Jason Kilar is in the spotlight after AT&T increased its guidance for the growth of its streaming service. The company said on Friday that it expects HBO and HBO Max to grow from 61 million subscribers in late 2020 to between 120 million and 150 million subscribers worldwide by the end of 2025, up from its prior forecast of 75 million to 90 million. Kilar forecast that HBO Max will be one of three streaming giants to emerge, along with Netflix and Disney+, which passed 100 million subscribers earlier this month. The company hasn't yet decided which markets will include an ad-supported version. Kilar also said the ad-supported version of HBO Max will be actually more profitable than the traditional subscription service.
cnbc.comDisney unveils plans to stream a galaxy of new series, films
NEW YORK – The Walt Disney Co.’s streaming plans shifted into hyper speed Thursday, as the studio unveiled a galaxy’s worth of new streaming offerings including plans for 10 “Star Wars” series spinoffs and 10 Marvel series that will debut on Disney+. But Disney also kept its biggest films — including Marvel's “Black Widow," Pixar's “Luca,” a “Lion King” prequel — on course for theatrical release. Jenkins becomes the first woman to direct a “Star Wars” film. Among the “Star Wars” series are two spinoffs of “The Mandalorian,” set during the series' timeline: “Rangers of the New Republic” and “Ahsoka,” with Rosario Dawson. Seven Disney films topped $1 billion worldwide.
WarnerMedia won't cause an industry shake-up: Other studios unlikely to end theatrical window in 2021
Don't expect other streaming services to follow suit — at least not yet. There are several reasons other media companies will be happy to watch WarnerMedia bust through the theatrical window without immediately following suit. HBO Max's higher ARPUWarnerMedia charges $14.99 per month for HBO Max. That means those streaming services would need even more people to sign up for their services to make up for lost box office revenue than HBO Max. Learning from HBO Max
cnbc.comAT&T has added 4 million HBO Max subscribers since Sept. 30, CEO John Stankey says
AT&T's WarnerMedia added 4 million HBO Max signups since the end of the third quarter, chief executive John Stankey said Tuesday. HBO Max now has 12.6 million activated users, up from 8.6 million on Sept. 30, Stankey said during UBS' Global TMT conference. Stankey and WarnerMedia CEO Jason Kilar are aggressively stocking HBO Max with new content in an effort to get to 50 million U.S. subscribers, the streaming service's 2025 goal. He said while live news and sports won't initially be part of HBO Max, that decision could change when HBO Max subscribers roughly equal the number of traditional pay-TV households. WATCH: WarnerMedia CEO: 'Not at all' worried about the success of HBO Max
cnbc.comThe home of the Sopranos is under siege: Inside the battle for the soul of HBO
Instead, Stankey decided to use HBO as the centerpiece for a new mission: Build a true Netflix competitor, dubbed HBO Max. He is attempting to funnel all of the company's resources from cable, film, and HBO into HBO Max, as he told CNBC last year. "Jason's belief is — wrongly — if any piece of content available anywhere other than HBO Max, it cheapens HBO Max," said one recently departed executive. By pricing HBO Max the same as HBO, Stankey seemed to assume HBO users would simply switch to HBO Max over time. Then there's the confusing branding around HBO Max, which initially joined a plethora of similarly named services, including HBO, HBO Go, and HBO Now.
cnbc.comWarnerMedia CEO Jason Kilar doesn't think he just destroyed the movie theater industry
On Thursday, AT&T's WarnerMedia announced it would release its entire 2021 slate of films directly on HBO Max at the same time they hit theaters. Even if the move becomes permanent, Kilar doesn't believe that ending the theatrical window would spell doom for movie theaters. HBO Max will debut globally next year. The HBO Max decision -- which makes 17 movies available for no extra charge for subscribers -- is a much bigger step in the direction of putting streaming subscriber growth over all else. WATCH: Warner Brothers will release all of its 2021 films in theaters and HBO Max concurrently
cnbc.comHere's the internal memo sent to employees as AT&T's WarnerMedia begins layoffs
The WarnerMedia moves follow similar restructurings at large traditional media companies including Disney and NBCUniversal. Here's Kilar's full memo, obtained by CNBC:This is a very painful email to write. Our journey entails continuing to excel in our large, core businesses while at the same time investing in emerging businesses where we have the opportunity to meaningfully delight customers. Today, we have arrived at a number of difficult decisions that are resulting in a smaller WarnerMedia team. Rather, our future is about inventing ever better ways to move the world through story … which entails embracing change.
cnbc.comAT&T president says consumer behavior will be fundamentally changed from coronavirus
The coronavirus pandemic will alter consumer behavior across the entire business landscape, AT&T President and COO John Stankey said Wednesday. "Not just AT&T, every company is going to see consumer behavior changes coming out of this event," Stankey told CNBC's Julia Boorstin. We're going to return to different business models," Stankey added on "Power Lunch." Stankey's comments came shortly after AT&T announced that Hulu co-founder Jason Kilar would take over as CEO of WarnerMedia on May 1. Stankey said he believes AT&T, with its diverse business units, is well situated to navigate a post-pandemic world.
cnbc.comWarnerMedia replaces CEO with Hulu co-founder Jason Kilar
AT&T is replacing WarnerMedia CEO John Stankey with Hulu co-founder Jason Kilar, the company announced Wednesday. WarnerMedia has been searching for a new CEO since AT&T elevated Stankey to chief operating officer in September. AT&T's executive shuffle on Wednesday puts Stankey in the best position to succeed Stephenson as CEO if Stephenson decides to step down after this year. Kilar's experience at Hulu gives him a solid background in streaming services as WarnerMedia seeks to compete with a bloated field of competitors. Kilar served as CEO of Hulu since founding the company in 2007 until 2013, according to the announcement.
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