US telecoms decide focusing on pipes isn’t so dumb after all

AT&T unveiled plans to spin out and merge WarnerMedia with Discovery. The company's failed media deals destroyed more than $50 billion in shareholder value. The telecoms sector has long been fascinated with Hollywood as it has railed against the notion that the industry is little more than a collection of “dumb pipes” that act as conduits for value created by other companies. Yet telecoms-media convergence often comes at great cost and companies including AT&T and Verizon have embraced the notion that focusing on the pipes may not be so dumb after all.