A widely popular tech giant/multinational conglomerate and a mass media television company have reportedly closed a deal that would create a $150 billion streaming giant, BBC News reports.

A merger between AT&T and Discovery is bringing one of Hollywood's most notable studios and Discovery's channels under the same ownership.

Since AT&T owns CNN, HBO and Warner Bros, the deal adds yet another player to a crowded market.

AT&T is hoping to overtake big players such as Netflix, Disney, and Amazon. 

AT&T and Discovery will create a new business that would be separate from AT&T and could be valued at $150 billion, including debt, the Financial Times reported.

Discovery's market value, including debt, currently stands at around $30 billion, according to BBC News.

The deal will partner Warner Bros. Entertainment with Discovery's stable of unscripted home, cooking, nature and science shows. WarnerMedia owns HBO and HBO Max, which currently boasts close to 64 million subscribers worldwide.

However, it doesn't have more subscribers than Netflix, which clocks in at about 208 million. Disney+, not far behind, has more than 100 million.

Three years ago, AT&T took over Time Warner with the intention of creating a media and telecoms giant that combined content and distribution.

But this was a costly move as the company was simultaneously expanding its next generation wireless services. As a result, AT&T added $14 billion to its debt pile in order to fund the purchase of wireless spectrum.

So, the deal with Discovery appears to be AT&T's latest attempt to reduce those debts.

AT&T is currently the world's largest telecom company by revenues.