HBO originally launched Max at a time when almost every cable TV conglomerate was releasing their own streaming service, to compete with Netflix and Amazon Prime Video. In Warner Bros case, it had...

On June 14, 2018, Time Warner was acquired by multinational conglomerate AT&T, who subsequently renamed Time Warner ‘WarnerMedia’. AT&T reported WarnerMedia’s global operating income as 8.19 billion U.S. dollars in 2020. Previous figures can be viewed for the purposes of tracking Time Warner’s income but due to being recorded pre-acquisition, cannot be compared to the company’s 2020 income.

What were the results of the AT&T-Time Warner acquisition?

The acquisition cost AT&T 85 billion U.S. dollars, and allowed AT&T to greatly increase its media holdings which it can leverage to support and grow existing and future direct-to-consumer services. AT&T now also owns WarnerMedia Entertainment subsidiary HBO, which includes streaming services HBO Go and HBO Now. New service HBO Max will launch in 2020 featuring popular American sitcom ‘Friends’, which will be removed from rival platform Netflix for the occasion.

AT&T also reorganized its broadcasting assets by dissolving Turner Broadcasting and dispersing it across WarnerMedia – WarnerMedia Entertainment is now comprised of HBO, TNT, TruTV, and TBS, and will also include HBO Max. Meanwhile, Cartoon Network, Adult Swim and others were moved to Warner Bros. and all sports content now comes under WarnerMedia News & Sports. WarnerMedia generated between eight and nine billion U.S. dollars in revenue in the quarters directly after the acquisition, and as such looks to be a lucrative investment for its new owner.