Three years after it made major moves in Hollywood by acquiring WarnerMedia, AT&T is making headlines again by merging its media assets with Discovery’s.

AT&T and Discovery announced that they had reached a deal to create a new, publicly-traded media company. This move will unwind AT&T and WarnerMedia’s relationship after only three years together.

The new business has yet to be named and will be led by current Discovery Chief Executive David Zaslav. The deal is still subject to regulatory approval and is likely to draw attention as it will create the second-biggest media company in the country by revenue. The business will encompass a wide selection of the entertainment industry, including streaming entertainment, movies, sports, and cable news. WarnerMedia owns cable channels such as HBO, CNN, TNT, and TBS, as well as the Warner Bros. television and film studio.

Once the merger is completed, the company will have a value above $100 billion. This company could rival media giants like Disney, currently the largest media company, and Netflix, the leader in streaming.

“This agreement unites two entertainment leaders with complementary content strengths and positions the new company to be one of the leading global direct-to-consumer streaming platforms. It will support the fantastic growth and international launch of HBO Max with Discovery’s global footprint and create efficiencies which can be re-invested in producing more great content to give consumers what they want,” said John Stankey, AT&T’s Chief Executive since 2008.

Under the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, AT&T is set to receive $43 billion in a combination of cash, debt securities, and WarnerMedia’s retention of certain debt. AT&T’s shareholders would receive stock representing 71% of the new company. Discovery shareholders would own 29%. The Boards of Directors of both companies have already approved the transaction.

“With a library of cherished IP, dynamite management teams and global expertise in every market in the world, we believe everyone wins…consumers with more diverse choices, talent and storytellers with more resources and compelling pathways to larger audiences, and shareholders with a globally scaled growth company committed to a strong balance sheet that is better positioned to compete with the world’s largest streamers,” said Zaslav.

Zaslav said the combined entities spend $20 billion on content, a level that tops Netflix’s recent programming budget.

The unloading of WarnerMedia is signaling to some analysts that the original deal was a mistake on AT&T’s part. The company seems to have disintegrated a significant portion of shareholder value fighting to be at the top of the entertainment and industry.

“John [CEO John Stankey] road shotgun on both of the big deals they have now unwound in the last few months [Time Warner and DirectTV]. He was very much a driver of the DirectTV deal and very much a driver of the Time Warner deal,” explained MoffettNathanson media analyst Craig Moffett.