Why AT&T's Entertainment Bet Is Paying Off for Investors
AT&T (NYSE: T) had plans under former CEO Randall Stephenson to create an ecosystem of entertainment, internet, and phone services to help the company attract and hold on to customers in the highly competitive U.S. telecom market. To that end, it acquired Time Warner, now dubbed WarnerMedia, in 2018.
Current CEO John Stankey, brought on last July, ended the company's media foray on May 17 with the announcement that AT&T's WarnerMedia assets would combine with Discovery Communications (NASDAQ: DISC.A) (NASDAQ: DISCK) to create a new entertainment company.
Does this mean AT&T's entertainment bet was a bust? A look at WarnerMedia's contributions over the past several quarters reveals the answer, and they point to how the deal with Discovery benefits shareholders.
Source Fool.com
