AT&T has announced a deal worth USD 108.7 billion for Time Warner
that would create a powerhouse with control over a vast array of media
and entertainment assets and the means to deliver them.
The stock—and—cash deal values Time Warner — with HBO, CNN and Warner
Bros studios — at more than USD 85 billion, and calls for AT&T to
absorb the media group’s debt.
It would give the big US telecom firm “the world’s best premium content
with the networks to deliver it to every screen, however customers want
it,” a statement from the companies said.
“This is a perfect match of two companies with complementary strengths
who can bring a fresh approach to how the media and communications
industry works for customers, content creators, distributors and
advertisers,” said AT&T chairman and chief executive Randall
Stephenson.
The tie—up makes AT&T a strong rival to Comcast, which owns
NBCUniversal, and aims to counter the growing threat from online rivals
such as Netflix and Amazon.
It also positions AT&T —— which recently acquired satellite TV group
DirecTV —— against longtime telecom rival Verizon, which has acquired
internet group AOL and is in the process of buying Yahoo, and against
new delivery platforms expected from Google and others.
But the deal is likely to face tough scrutiny from antitrust regulators,
and Republican presidential nominee Donald Trump said he would block it
if elected.
Even before the announcement, US consumer groups called for regulators to consider the impact of the tie—up.
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