AT&T (T) - Get AT&T Inc. Report officially kicked off a massive overhaul of its newly minted WarnerMedia unit on Monday, looking to combine various networks and entertainment units and beef up the likes of CNN and HBO as it seeks to streamline operations and create more original online and streaming content.
WarnerMedia CEO John Stankey announced on Monday that former NBC Entertainment Chairman Robert Greenblatt will be chairman of a newly created unit called WarnerEntertainment and Direct-to-Consumer. The news was first reported by TheWall Street Journal.
Greenblatt will lead a new networks unit composed of HBO and Turner's entertainment unit, and will also oversee content on the direct-to-consumer streaming service that WarnerMedia plans on launching later this year, the Journal wrote.
Other parts of Turner are being cut and/or merged, including Turner's sports division, which will be overseen by current CNN chief Jeff Zucker. Zucker will become chairman of WarnerMedia News and Sports, as well as president of CNN.
The appointments follow the departures last week of long-time HBO CEO Richard Plepler and Turner president David Levy, and come almost nine months after AT&T closed its $85.4 billion acquisition of Time Warner.
AT&T first announced its plans to purchase Time Warner in October of 2016. Just over a year later, the Justice Department sued to stop the deal on antitrust grounds. An appeals court last week rejected the Justice Department's bid to overturn the ruling, with the department declaring it will no longer contest the deal.
Shares of AT&T were down 1.5% to $30.36 in mid-morning trading on Monday on the New York Stock Exchange.