AT&T Has Agreed to Acquire Time Warner in $85 Billion Media Deal (UPDATED)
The talk of an AT&T-Time Warner merger has gotten the media world buzzing, and now it seems an agreement has already been reached.
The Wall Street Journal reports today that AT&T reached the agreement today for “between $105 and $110 a share” and it could be announced as soon as today.
The merger would allow AT&T to acquire all of Time Warner’s media properties, including HBO, CNN, TBS, other TV networks, and, of course, Warner Bros.
The WSJ provides some insight into why AT&T would be making this big move:
AT&T has been shifting its sights to media and video in recent years, diving deeper into television after its nearly $50 billion deal to acquire satellite television provider DirecTV last year. That made AT&T, which traces its roots to the old ‘Ma Bell, the country’s biggest pay television provider as well as its second-largest wireless operator.
The last time there was a merge this big was Comcast and NBC. (And today Donald Trump said he wouldn’t allow either of them…)
UPDATE – 7:40 p.m. ET: According to CNN’s Brian Stelter, it’s a done deal. AT&T will purchase Time Warner in a deal worth approximately $85 billion.
IT'S OFFICIAL: AT&T TO BUY TIME WARNER IN MEDIA MEGA-DEAL https://t.co/CFnEBn9KTb
— Brian Stelter (@brianstelter) October 22, 2016
AT&T says "the transaction is expected to close before year-end 2017." Translated: the government regulatory review will take 12+ months.
— Brian Stelter (@brianstelter) October 22, 2016
Jeff Bewkes will remain Time Warner CEO during the review. Afterward, he'll stay on to "ensure a smooth transition," source says
— Brian Stelter (@brianstelter) October 22, 2016
[image via AT&T]
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