Discovery CEO David Zaslav has reportedly signed a new contract through 2027. He's set to lead a new streaming giant formed through Discovery's merger with WarnerMedia.

• Discovery CEO David Zaslav has signed a new contract to stay on through 2027, sources told Axios.
• Zaslav will lead the joint venture between Discovery and AT&T's WarnerMedia, announced Monday.
• The deal between AT&T and Discovery could create a new streaming giant to rival Netflix and Disney.

Discovery CEO David Zaslav has signed a new contract to remain head of the company through 2027, sources told Axios on Tuesday.

The news comes after US telecom giant AT&T announced on Monday it would spin off its WarnerMedia content unit - which includes HBO, TNT, CNN, and Warner Bros. - and merge it with media company Discovery.

Zaslav is set to lead the new company. The sources told Axios that Zaslav's new contract would be announced next week, at the same time the new company name is revealed.

Zaslav, who previously worked for NBCUniversal, will move the majority of his C-suite executives at Discovery to the new joint venture, sources said. AT&T will own 71% of the new company.

The 61-year-old will aim to keep the creative talent at WarnerMedia, but its business and corporate groups are likely to get cut, sources said.

The deal between AT&T and Discovery could give rise to a new streaming giant that's in direct competition with Netflix and Disney.