There were rumblings of this merger happening towards the end of last week and was officially confirmed yesterday evening. AT&T acquired Time Warner and all of its properties for a total of $85. 4 billion which equates to $107.50 per share.
This turns AT&T from a telecom company to one of the biggest media companies.
AT&T is looking towards the future w/ video as they’ve just acquired one of the biggest media companies. Having recently acquired DirecTV, this move will help put AT&T in a position to provide tons of video content. For those of you who are unaware, Time Warner owns CNN, Cartoon Network/Adult Swim, DC Comics/Entertainment, HBO, TBS, TNT, and Warner Bros Entertainment. But it keeps going as they own the rights to the NBA, March Madness, and MLB. And lastly, have invested in companies like Hulu, Bleacher Report, & Fandango.
For those of you who are unaware, Time Warner owns CNN, Cartoon Network/Adult Swim, DC Comics/Entertainment, HBO, TBS, TNT, and Warner Bros Entertainment. But it keeps going as they own the rights to the NBA, March Madness, and MLB. And lastly, have invested in companies like Hulu, Bleacher Report, & Fandango. So this can really put AT&T in a great position to provide entertainment via mobile video.
This can help out as their growth in cellular subscribers hasn’t been huge as of late. They recently lost a total of 268,000 customers while Sprint & T-Mobile has been growing in subscribers. This can be utilized to pick up the slack in revenue.
Like any other massive deal of this size, it is subject to approval by the FCC and expected to close by the end of next year.
