TBB AT&T Inc

AT&T is preparing to spin off its media business and merge it with Discovery Inc. in a tax-friendly deal, reversing an $85 billion acquisition made less than three years ago. The transaction is expected to create a formidable competitor to Netflix and Walt Disney Co., with the new company potentially led by Discovery CEO David Zaslav. This move signifies a major strategic shift for AT&T, which has been under pressure to focus on its core telecommunications business and reduce debt.

The government review of AT&T Inc.’s $85 billion takeover of Time Warner Inc. has reached an advanced stage, with lawyers discussing merger conditions with the Justice Department. This marks a significant milestone for a deal that was closely watched for indications of the Trump administration's stance on large mergers. This progress occurred despite a vacant seat leading the department's antitrust division.

AT&T's acquisition of DirecTV, alongside the Comcast-Time Warner Cable deal, could result in roughly half of U.S. households getting Internet and TV services from just two major companies. This $67.1 billion stock-and-cash deal by AT&T Inc. aims to offer consumers bundled video, high-speed broadband, and mobile services. The article discusses how this could lead to a three-horse race in U.S. Internet access and pay-TV.