As part of the deal, Discovery's networks, which include Discovery Channel and Animal Planet, can be accessed on all of AT&T DirecTV's platforms, including its upcoming DirecTV Now streaming service that's launching later this year, the company said in a statement.
Terms of the deal weren't disclosed.
The deal settles some consumer concerns that Discovery, like some of its peers, would experience a reduction in affiliate fees, MoffettNathanson said, according to Reuters.
Distributors have looked to remove certain channels from lower-cost packages and renegotiate distribution fees for carrying TV networks' content.
The company now has reached agreements with Comcast (CMCSA) and AT&T DirecTV. Time Warner Cable (TWC) is the only distributor yet to renew its agreement with the company, Reuters added.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The team rates Discovery Communications as a Hold with a ratings score of C+. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and notable return on equity. However, as a counter to these strengths, it also finds weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk.