AT&T inks mega deal to buy Time Warner for $85 billion

In what has been dubbed as one of the biggest media deals ever, wireless and internet service company AT&T and Time Warner, home to channels like HBO, CNN, TNT, Warner Bros and more, have entered into a definitive agreement under which AT&T will acquire Time Warner in a stock-and-cash transaction valued at $107.50 per share. The agreement has been approved unanimously by the boards of directors of both companies.

 The deal combines Time Warner’s vast library of content and ability to create new premium content that connects with audiences around the world, with AT&T’s extensive customer relationships, world’s largest pay TV subscriber base and leading scale in TV, mobile and broadband distribution.

 The new company will have complementary strengths to lead the next wave of innovation in converging media and communications industry. The combined company is positioned to create new customer choices – from content creation and distribution to a mobile-first experience that’s personal and social.

 The two companies had been in talks for a possible buyout since August this year, Jeff Bewkes, CEO, Time Warner and Randall Stephenson, CEO, AT&T, informed the media via a conference call. The deal is expected to close by the end of 2017 after a stringent a review by US government regulators.

 Post the merger, AT&T will be able to expand its business to include programming content related to entertainment, news and sports. On the other hand, AT&T brings its strong distribution network to the table, which includes 130 million mobile phone customers and 25 million pay-TV subscribers.

 

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