San Francisco, Feb 10 (IANS): The $43 billion Discovery and WarnerMedia deal to create the next big content streaming giant has cleared an antitrust review from the US government agencies, according to a filing with the Securities and Exchange Commission (SEC).

AT&T in May last year announced to spin off its media business WarnerMedia and merge it with TV company Discovery, creating a major new player in the media world to compete with streaming giants like Netflix and Disney.

The all-stock deal will see AT&T receive $43 billion in a combination of cash, debt securities, and debt retention on the part of WarnerMedia.

AT&T bought WarnerMedia in 2016 for $85.4 billion.

According to a report in The Verge, once finalised, the merged company will be one of the biggest media conglomerates in the US.

Last year, the companies announced the new media entity would be called Warner Bros. Discovery.

The new company will compete globally in the fast-growing direct-to-consumer business -- bringing compelling content to DTC subscribers across its portfolio, including HBO Max and the recently launched discovery+.

The transaction will combine WarnerMedia's storied content library of popular and valuable IP with Discovery's global footprint, trove of local-language content and deep regional expertise across more than 200 countries and territories.

According to AT&T, the new company will be able to invest in more original content for its streaming services, enhance the programming options across its global linear pay TV and broadcast channels, and offer more innovative video experiences and consumer choices.