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October 23 2016

AT&T to purchase Time Warner for $85.4 billion

As deals go, this one is massive and will impact far more than you can possibly imagine.

Time Warner is a huge media company with its fingers in print, TV, movies, music, streaming media and much more. Although you may not always know it, Time Warner is more than likely behind something you enjoy.

Watch Game of Thrones on HBO? Time Warner owns HBO.

Enjoy The Big Bang Theory? Although aired on CBS in the U.S., it is produced by Warner Brothers Television, a division of Time Warner.

Enjoying the latest issue of Batman? Time Warner owns DC Comics.

Catching up on the days headlines on CNN? Yep, it belongs to Time Warner.

As you can see, for AT&T’s $85.4 billion the phone company has found its way into just about every corner of your life.

The deal apparently only came to life this past August from a conversation between AT&T Chief Executive Randall Stephenson and Time Warner Chief Executive Jeff Bewkes. “He came to talk to me about his view of distribution going forward, and my view of content,” said Bewkes in an interview after the deal was announced. “He said, ‘conceptually it might make sense for us to combine. Should we investigate?’ ”

Stephenson will become the head of the new company while Bewkes serves as interim chief.

The deal is not done yet as it is sure to face regulatory scrutiny from the U.S. government, but Stephenson said in a conference call Saturday night that “any concerns by the regulators we believe would be adequately addressed by conditions.” According to The Wall Street Journal, however, Walt Disney Co. Chief Communications Officer Zenia Mucha has said that “a transaction of this magnitude obviously warrants very close regulatory scrutiny.”

Companies are desperate for content, and with AT&T owning DirecTV, and the number of cord cutters growing by the year, if AT&T wants to remain in this game, it needs a huge library from which to pull. Time Warner is sitting on a treasure trove of content that would make any company an instant player.

This is a deal that’s worth being watched by anyone that enjoys any form of media because I have a feeling this is the start of many more deals like this.


Via: The Wall Street Journal .


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