Time Warner To Be Acquired By AT&T For 8.4 Billion

1it enterprise

1it enterpriseIn a continuing trend of merging of media and communication companies AT&T will acquire Time Warner for $8.4 billion. The Time Warner’s film studio and entrainment library are supposed to be collaborating with AT&T’s distribution network of broadband, mobile and TV in the Latin America, US, and Mexico. Under the terms of the merger, Times Warner shareholders will receive $107.50 per share ($53.75 as cash and 53.75 as share from AT&T Stock). The deal subjected to review by the US department of Justice and approval by Time Warner shareholders is expected to close by the end of 2017. For the FCC license to be transferred to AT&T a review from the Federal Communication Commission might also be required.

 

To become the largest paid television provider in the US AT&T acquired the DirectTV in July last year. Comcast’s 51 percent of acquisition of NBC Universal from General Electric is another instance for the communication companies looking for new revenue streams. While Verizon’s announcement of the acquisition of the Yahoo’s core business, acquisition of AOL and some other sites is another instance. AT&T said they will be the first to compete nationwide with cable operators in providing the bundle mobile broadband and video. Regardless the choice of the customer to view the content the deal will deliver the premium content on every screen.