AT&T will acquire Time Warner for US$85.4b in content play

The move reflects a trend for consolidation among communications and media firms

AT&T said it will acquire Time Warner for US$85.4 billion, reflecting a continuing trend for the consolidation of communications and media companies.

The deal aims to combine content from Time Warner, which has a film studio and a vast library of entertainment, with AT&T’s distribution network of mobile services, broadband and TV in the U.S., Mexico and Latin America, AT&T said late Saturday.

Under the part cash, part stock deal, Time Warner shareholders will receive $107.50 per share under the terms of the merger, consisting of $53.75 per share in cash and $53.75 per share in AT&T stock.

The transaction is expected to close by the end of 2017, and is subject to approval by Time Warner shareholders and review by the U.S. Department of Justice, AT&T said. Review from the Federal Communications Commission may also be required to the extent that FCC licenses may have to be transferred to AT&T under the deal.

AT&T acquired DirecTV in July last year to make it the largest paid television provider in the U.S.

Communications companies are looking for new revenue streams. Comcast, for example, acquired 51 percent of NBC Universal from General Electric in 2011, while Verizon acquired some media sites and also expanded its presence online with the acquisition of AOL and announced in July this year its proposed acquisition of Yahoo's core internet business for $4.8 billion.

Working on the premise that the “future of video is mobile and the future of mobile is video,” AT&T said it would be the first U.S. mobile provider to compete nationwide with cable companies in the provision of bundled mobile broadband and video. The deal would deliver to customers the best premium content on every screen, regardless of how customers want to view it, the carrier added.

The company has around 315 million mobile customers in the U.S.

Republican presidential candidate Donald Trump has criticized the deal, claiming it would result in “too much concentration of power in the hands of too few,” and warned that his administration would not approve it.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Is your content marketing missing the mark?

Does it ever seem like the content you create falls flat on its face or that the leads you’re generating aren’t worth following up?

Dan Ratner

managing director, uberbrand

​ Creating a purpose-driven brand

So you want to be a brand with purpose. But what does it actually mean to build a brand with real meaning?

Paul Chappell

Partner and managing director, Brand + Story

Customer experience crisis: Proactively mitigating the risk of broken promises

Last Friday, three weeks after United Airline’s spectacular customer experience disaster, customers received a letter from the company’s CEO, Oscar Munoz.

Very rarely have I come across views so true. There are so many gems in this article, reflective of reality, onec can read it again and a...

Shyam Mishra

ANZ digital chief: Tackle the ‘frozen middle’ of your organisation or face irrelevancy

Read more

STOP STEALING BUISNESS CLASS TOILETS from A380, new 787's and A330's!!!!Thats what you call customer experience ONE toilet for all Busine...

Joe

Qantas CMO: What it's taking to evolve our customer experience

Read more

Dare i suggest that a "CEO" role in a peak industry body like Think Brink is not really much of a leap from CMO because it is also a mark...

Sventana

CMO to CEO: Think Brick chief reveals what it takes to make the jump

Read more

Grate post, thanks for the post.No matter what your business is, if you do no not rank among the top most search results of Google, Yahoo...

Rahul

Image intelligence:10 must-see infographics for marketers

Read more

Thank you Shane Blandford for carrying my Smarketing vision into KM !

Peter Strohkorb

​CMO Interview: Why aligning sales and marketing drives innovation at Konica Minolta

Read more

Latest Podcast

More podcasts

Sign in