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AT&T to acquire Time Warner for $85.4 billion


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ATT announced this weekend that it intends to acquire Time Warner for $85.4 billion. To be clear, this is not Time Warner Cable, which was sold to Charter Communications earlier this year.

ATT said it was attracted to Time Warner because of its “vast library of content and ability to create new premium content that connects with audiences around the world.” Specifically, ATT said it believes that the “future of video is mobile and the future of mobile is video.” This suggests that ATT plans to make all of Time Warner’s content available to its mobile customers, which would be a similar move to its strategy following its acquisition of DirecTV.

“The new company will deliver what customers want — enhanced access to premium content on all their devices, new choices for mobile and streaming video services and a stronger competitive alternative to cable TV companies,” ATT said.

Time Warner consists of three divisions including HBO; Warner Bros. Entertainment (Harry Potter, DC Comics, etc.); and Turner, which includes CNN, TNT, TBS, Cartoon Network, and other properties.

ATT plans to pay $107.50 per share of Time Warner including $53.75 per share in cash and $53.75 in ATT stock. Time Warner shareholders still need to approve the deal, as does the U.S. Department of Justice. ATT hopes it closes by the end of next year.

Article source: http://www.technobuffalo.com/2016/10/24/att-to-acquire-time-warner-for-85-4-billion/