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AT&T announces deal to acquire Time Warner for more than US$85 billion

By Kenny Yeo - on 24 Oct 2016, 10:09am

AT&T announces deal to acquire Time Warner for more than US$85 billion

(Image source: AT&T)

Telecommunications giant AT&T has just announced that it has struck a deal to acquire Time Warner for more than US$85 billion.

The deal will see AT&T pay US$107.50 per share in a stock and cash transaction. 

And if the deal goes through, it means that AT&T will gain control of hugely successful and influential entertainment and news brands such as CNN, HBO, Warner Bros. Entertainment, DC Comics, and more.

This latest deal comes a year after AT&T's acquisition of DirecTV for over US$48.5 billion, and signals the telecoms company's intention to transform itself into a media powerhouse.

There are, however, concerns that the deal will run afoul of anti-trust issues as there is a fear that AT&T will make use of its position to give preferential treatment to content from Time Warner.

AT&T could, for example, allow its customers to watch content from Time Warner without it counting against their data caps.

As such, industry insiders believe that the deal will be subjected to rigorous regulatory scrutiny

Nevertheless, Randall Stephenson, AT&T chairman and CEO, believes that regulators will approve the deal. "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."

Source: AT&T via The Verge, BBC

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