As Discovery finalizes its deal for WarnerMedia, John Stankey, the AT&T boss who oversaw the telco’s abandoned foray into the media world, bids farewell to his soon-to-be ex-colleagues. Stankey led AT&T’s acquisition of DirecTV and Time Warner in 2015 and 2018 before replacing Randall Stephenson as CEO of AT&T in July 2020.
“My respect and appreciation for those with whom I have worked closely remain unbroken, and I will miss continuing to learn and problem-solve with you,” Stankey wrote. “I will particularly miss marveling at the work behind the scenes to develop remarkable stories and executions that spring from your daily passion. Their friendship and support when not needed will always be remembered.”
The $43 billion acquisition of WarnerMedia is expected to close as early as Friday, and the new company, which will be renamed Warner Bros. Discovery, will be first to open Monday morning. This will see David Zaslav, the Discovery boss who spearheaded the deal, in firm control of a company with a portfolio that includes HBO, TNT, CNN, Food Network, HGTV and TLC. Stankey predicted the new company would be well-positioned to compete in a media landscape dominated by Netflix and Disney.
“I remain confident that we are on the right track,” Stankey wrote. “Over time, the combination of WarnerMedia and Discovery will create a stronger company and accelerate the already strong pace of innovation and change that you have established. I intend to enjoy the fruits of your labor as you shape the future of WBD! But most of all, I will actively stand on the sidelines and cheer you on for your continued success in building one of the world’s most beloved media brands.”
Under AT&T ownership, WarnerMedia aggressively entered the streaming space, launching HBOMax, its own Netflix challenger, in May 2020. The service eventually attracted 74 million subscribers, exceeding expectations. But a combination of debt and regulatory delays helped derail the merger, as did AT&T’s need to raise additional capital to build out its 5G network. AT&T intends to use proceeds from its WarnerMedia spin-off to pay down net debt, which was $156.2 billion at the end of 2021.
Several executives Stankey tapped to help him run WarnerMedia, including Jason Kilar, the man who succeeded him as head of the company, and Ann Sarnoff, the former Warner Bros. CEO, are leaving the company. since Discovery takes over. Stankey praised Kilar’s leadership in his suicide note.
“The way was neither easy nor clear,” he wrote. “I would like to give a special thank you to Jason and all of WarnerMedia’s leadership for leading this remarkable development through some of the most unprecedented times we have ever seen at the company, the industry and the world.”
Here is Stankey’s full note:
To my WarnerMedia colleagues,
As we work to complete the combination of WarnerMedia and Discovery and launch Warner Bros. Discovery, I want to share a few thoughts.
In July 2018 I wrote to you:
We have a unique opportunity to be truly at the forefront of the transformation happening in media and entertainment, direct selling and technology. We are at a rare tipping point that will shape the direction and structure of content and dissemination—central to how nearly everyone on earth relates to society and to those around them—for decades to come.
Today we can clearly see that you have created a remarkable body of work, reaching up to the moment I highlighted almost four years ago. It is undoubtedly a work in progress, but your achievements have been outstanding. The results and the course are clear. Three storied and proud companies have made difficult choices and choices to work together and work together in a way that wasn’t the norm four years ago. While doing all the important work of managing companies in transition, you brought the best of each unit to create something new – something creatives want to be a part of and consumers around the world have embraced . They have laid the foundation that can propel a proud legacy and storied brands for another decade with even broader and more engaging cultural impact than ever.
You are to be congratulated and praised. The path was neither easy nor clear. I would like to give a special thank you to Jason and all of WarnerMedia’s leadership for leading this remarkable development through some of the most unprecedented times we have ever seen at the company, the industry and the world. Those at the table truly understand the adversity and challenges that had to be overcome to reach this moment. I am pleased to see the progress and achievements you have made and I am confident that you will move into this next chapter with even more opportunities. Thank you from the bottom of my heart.
I’ve always worked hard to live my life with no regrets. I wish I could say I didn’t have one, but there are. Shari was right that we should have had that fourth child! I’ll end this chapter with you on two counts – my disappointment at not being there when you successfully complete this remarkable transition, and the loss of some regular professional relationship interactions that I have enjoyed so much. My respect and appreciation for those I have worked closely with remains, and I will miss continuing to learn and problem-solve with you. I will especially miss marveling at the work behind the scenes to develop remarkable stories and executions that spring from your daily passion. Your friendship and support when it wasn’t needed will always be remembered.
Getting to this moment was one of the harder decisions of my life. I’m sure you’re not surprised that it came with quite a bit of fear, disappointment and apprehension about the changes it would unleash. All in all, I am confident that we are on the right track. Over time, the combination of WarnerMedia and Discovery will create a stronger company and accelerate the already strong pace of innovation and change you have established. I intend to enjoy the fruits of your labor as you shape the future of WBD! But most of all, I will actively stand on the sidelines and cheer you on for your continued success in building one of the world’s most beloved media brands.
Kind regards, thank you again and all the best to you.
John
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