to empower competent political leaders, rather than militants like Hamas. Israel can’t make a peace deal, its supporters say, until it has a partner more interested in building a prosperous society than trying to destroy Israel.

Before this conflict started, an optimist could imagine how the next few years might bring progress. Israel and four Arab nations recently established diplomatic relations, a breakthrough that could eventually offer a framework for resolving the Palestinian question.

But the new fighting seems to be squelching most optimism. Major street violence between Israel’s Arab and Jewish citizens has broken out for the first time in years. It remains unclear when the missile attacks and bombings will stop or if they will instead escalate into a ground war. It also remains unclear when either the Israelis or Palestinians will have political leaders whose priority is peace.

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spinning off the Warner properties, which include HBO and CNN, into a new company that is merging with Discovery Inc., which owns reality-based cable channels like HGTV and the Food Network. Nothing will change for consumers in the short term; the deal won’t close for another year, if regulators approve it.

Still, the news highlights how “traditional entertainment companies are struggling to keep viewers as the likes of Facebook, YouTube and TikTok draw big audiences,” Edmund Lee and John Koblin write in The Times. Bringing together two of the largest media companies “appears to be the quickest way to buy more eyeballs.”

Long term, consolidation often leads to higher prices for consumers. “It hints at a future with fewer, broader streaming options,” Jason Karaian, the editor of DealBook, said. Find more on what the deal means for your favorite shows.

play online.

Here’s today’s Mini Crossword, and a clue: Politician’s mistake (five letters).

If you’re in the mood to play more, find all our games here.


Thanks for spending part of your morning with The Times. See you tomorrow. — David

P.S. Abraham Lincoln became the Republican nominee for president 161 years ago today. “The youngster who, with ragged trousers, used barefoot to drive his father’s oxen and spend his days in splitting rails, has risen to high eminence,” The Times wrote.

You can see today’s print front page here.

Today’s episode of “The Daily” is about the U.S. economy. On “Popcast,” the rediscovery of Beverly Glenn-Copeland.

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AT&T’s WarnerMedia Group to Merge With Discovery

It’s as if Logan Roy, the fictional patriarch of the Waystar Royco media empire on HBO’s popular series “Succession,” masterminded the deal himself: AT&T has thrown in the towel on its media business and decided to spin it off into a new company that will merge with Discovery Inc.

The transaction will combine HBO, Warner Bros. studios, CNN, TNT, TBS and several other cable networks with a host of reality-based cable channels from Discovery such as Oprah Winfrey’s OWN, HGTV, the Food Network and Animal Planet.

But it raises numerous questions about what that will mean for popular shows and streaming platforms, whether entertainment bills will go up or down, or what will happen to the people working at WarnerMedia and Discovery.

WarnerMedia is known for producing some of the industry’s biggest theatrical and television hits.

HBO last year captured more Emmys than any other network, studio or platform, and its hit shows include “Succession,” “Curb Your Enthusiasm” and “Last Week Tonight With John Oliver.” It also has a huge library that includes “The Sopranos,” “Game of Thrones” and “Sex and the City.”

Netflix, the industry leader, has over 200 million subscribers, and everyone else is far behind.

Both WarnerMedia and Discovery have invested heavily in streaming. WarnerMedia has spent billions building HBO Max, which together with the HBO cable network has about 44 million customers. Discovery has 15 million global streaming subscribers, most of them for its Discovery+ app.

The companies plan to invest more in both services to get those numbers much higher. David Zaslav, the chief executive of Discovery, who will run the new business, said on Monday that he envisioned hundreds of millions of subscribers around the world, but that will be tough as Netflix and Disney invest in new shows of their own to keep a grip on the market.

Jason Kilar, who was hired to run AT&T’s media group only last year, is most likely on his way out. He was kept in the dark about the deal until a few days ago, and he has hired a legal team to negotiate his departure, according to two people briefed on the matter.

But it could mean the elevation of other executives within WarnerMedia. On Monday, Mr. Zaslav praised Toby Emmerich, the head of the film division, Casey Bloys, who runs HBO, and Jeff Zucker, the leader of CNN. Mr. Zucker and Mr. Zaslav are also longtime golfing buddies.

When asked about his plan for the management team, Mr. Zaslav said he would not favor Discovery executives.

“Philosophically, our view is we don’t know better,” he said. “There’s a reason WarnerMedia is where it is today.”

The companies expect the deal to be finalized in the middle of next year, and they anticipate annual cost savings of $3 billion. That usually means layoffs are coming.

WarnerMedia already went through several rounds of deep staff cuts after AT&T’s purchase of the company in 2018 as Mr. Stankey, who led the unit for a time, slimmed down the operations. Executives and managers were let go as he combined HBO, Warner Bros., CNN and the other cable networks under a single management team.

When Mr. Kilar came aboard last year, he cut further. Over 2,000 employees were laid off in the process.

To realize $3 billion in cost savings will inevitably mean more layoffs — at both WarnerMedia and Discovery. Mr. Zaslav said there was “a treasure trove of talent” at WarnerMedia, and emphasized the fact that Discovery doesn’t make scripted shows.

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