AT&T Reaches Agreement to Acquire Time Warner for $85.4 Billion

AT&T Reaches Agreement to Acquire Time Warner for $85.4 Billion

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AT&T and Time Warner today announced they 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. This purchase price implies a total equity value of $85.4 billion and a total transaction value of
$108.7 billion, including Time Warner’s net debt. 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.

“This is a perfect match of two companies with complementary strengths who can bring a fresh approach to how the media and communications industry works for customers, content creators, distributors and advertisers,” said Randall Stephenson, AT&T chairman and CEO. “Premium content always wins. It has been true on the big screen, the TV screen and now it’s proving true on the mobile screen. We’ll have the world’s best premium content with the networks to deliver it to every screen. A big customer pain point is paying for content once but not being able to access it on any device, anywhere. Our goal is to solve that. We intend to give customers unmatched choice, quality, value and experiences that will define the future of media and communications.

Time Warner Chairman and CEO Jeff Bewkes said, “This is a great day for Time Warner and its shareholders. Combining with AT&T dramatically accelerates our ability to deliver our great brands and premium content to consumers on a multiplatform basis and to capitalize on the tremendous opportunities created by the growing demand for video content. That’s been one of our most important strategic priorities and we’re already making great progress — both in partnership with our distributors, and on our own by connecting directly with consumers. Joining forces with AT&T will allow us to innovate even more quickly and create more value for consumers along with all our distribution and marketing partners, and allow us to build on a track record of creative and financial excellence that is second to none in our industry. In fact, when we announce our 3Q earnings, we will report revenue and operating income growth at each of our divisions, as well as double-digit earnings growth.

Time Warner has a large portfolio of content creation and aggregation, plus popular brands across video programming and TV/film production. Time Warner is divided into three divisions: HBO, which consists of domestic premium pay television and streaming services (HBO Now, HBO Go), as well as international premium & basic pay television and streaming services; Warner Bros. Entertainment, which consists of television, feature film, home video and videogame production and distribution. Warner Bros. film franchises include Harry Potter & DC Comics, and its produced TV series include Big Bang Theory and Gotham; Turner, which consists of U.S. and international basic cable networks, including TNT, TBS, CNN and Cartoon Network/Adult Swim. Also, Turner has the rights to the NBA, March Madness and MLB. Time Warner also has invested in OTT and digital media properties such as Hulu, Bleacher Report, and Fandango.

The merger is subject to approval by Time Warner Inc. shareholders and review by the U.S. Department of Justice. AT&T and Time Warner are currently determining which FCC licenses, if any, will be transferred to AT&T in connection with the transaction. To the extent that one or more licenses are to be transferred, those transfers are subject to FCC review. The transaction is expected to close before year-end 2017.

AT&T Reaches Agreement to Acquire Time Warner for $85.4 Billion

Not Cable - October 23, 2016 at 6:43pm
This has nothing to do with the spectrum acquired part of time warner cable. This is more of an acquisition of hbo and time warner owned networks not the cable/internet side.
Not Cable - October 23, 2016 at 6:46pm
This is more about content like hbo than the tv/cable assets acquired when Charter bought time warner cable and became spectrum.
RealDeal - October 23, 2016 at 10:33am
Sasha - October 23, 2016 at 7:18am
The only thing I'm worried about is time warner gives you the ability to download unlimited amounts of data but AT&T does not 250 gigs is the limit if they acquire Time Warner and What once was wonderful to 250 unusable gigs for a power user of course then I guess I have the biggest reason to hate that! Keep in mind 4K content and devices that can consume tons of data so much mobile data so much content on the Internet so much data to consume but if there's going to be a cap on it then why have so much data as it is most cell phone providers have some kind a gimmick with unlimited service it's either throttled for video and audio or managed in someway to not be as free flowing or just plain capped... we should have unlimited data flow on everything I devices and the content out there demands it we either consume the data or we sip on it because companies either won't let us eat it all up or want to manage it in my definition that is controlled by a company. At some point we will find a way to suck up all the data causing them to lose money it may take a while but it will backfire at some point because devices only become more Advance causing the data to be larger
A non e moose - October 23, 2016 at 3:21pm
I think you need to worry more about basic grammar
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