In 2022, Discovery and AT&T agreed to a deal that saw AT&T’s Warner Bros. and Discovery merge for $43 billion. That was met with a shareholder lawsuit saying the deal was not fair.
A handful of pension funds sued, arguing the transaction unfairly helped some high-end investors but hurt others.
Now through mediation the two sides have agreed to a $125 million settlement that will bring the lawsuit to end, according to court documents filed last Friday and spotted by Deadline.
Under the deal, AT&T holds a 71% ownership of Warner Bros. Discovery, and the old Discovery company owns the remaining 29%. And, with this deal, the leadership team from Discovery runs the newly formed company.
This all comes as AT&T has been spinning off parts of its company to separate itself from its media companies. This includes DIRECTV that AT&T also retains a majority ownership of but spun it off into an independent company a few years ago.
Slowly AT&T has separated itself from its media assets but remains the majority owner.