Time Warner is changing its name to WarnerMedia, and the CEO of Turner is leaving

Patrick T. Fallon | Bloomberg | Getty Images
Randall Stephenson, CEO, AT&T

Time Warner is changing its name to WarnerMedia now that its $85 billion deal with AT&T has closed, and Turner CEO John Martin is departing the company, according to an internal memo from an AT&T executive.

The memo, written by John Stankey, the new head of Time Warner, outlined a new operating structure for the combined entity. HBO head Richard Plepler and Warner Bros. chief executive Kevin Tsujihara will stay in their roles. Turner's president David Levy and Gerhard Zeiler, head of Turner International, will report to Stankey, as will Jeff Zucker, president of CNN Worldwide.

AT&T completed its purchase of Time Warner on Thursday, two days after a federal judge ruled that its bid for the media company was legal. The Department of Justice sued last year to block the deal, arguing that it was anticompetitive and could raise prices for consumers.

"AT&T and Time Warner are incredibly storied and capable companies. However, both companies face an industry structure and competitive landscape that clearly places a premium on innovation and speed like no other time in our respective histories," Stankey wrote in the memo.

Stankey also said that Time Warner was getting its new name because it was often confused with Time Warner Cable, the former cable company bought by Charter Communications in 2016.

Earlier on Friday, AT&T CEO Randall Stephenson said he feels he has all the right people in place to lead the various divisions at the combined company,and that AT&T plans to invest in the new businesses being brought into the fold.

— CNBC's Julia Boorstin contributed to this report.

This story is developing. Please check back for updates.

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