Telecommunications giant AT&T agreed on Saturday to buy media and entertainment conglomerate Time Warner, which is home to HBO, TNT, Warner Bros Studio, CNN and many other channels and websites, for $85.45 billion. The deal represents one of the biggest media tie-ups in history.
Deal Would Increase Both Companies' Power
According to the International Business Times, AT&T will pay $107.50 per share - a premium of almost 20 percent on Time Warner´s closing price on October 21. The new deal´s value is $109, billion including Time Warner´s debt. The purchase would create a monster company capable of both producing content and distributing it to millions of people with broadband subscriptions, satellite TV connections and wireless mobile devices.
"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. Premium content always wins," AT&T chief executive Randall Stephenson said in a statement.
"It has been true on the big screen, the TV screen and now it's proving true on the mobile screen. We intend to give customers unmatched choice, quality, value and experiences that will define the future of media and communications."
According to CNN Money, this deal will be very beneficial for both Time Warner and the telecommunication giant, since it will help both companies diversify their businesses beyond wireless phones and internet services. The deal will also expand Time Warner's TV content with much more power, which would be helpful in finding new ways of reaching consumers.
AT&T And Time Warner´s Deal To Be Blocked By Donald Trump?
Time Warner includes everything from "The Big Bang Theory", "Anderson Cooper 360" and the famous series "Game of Thrones". Having a this deal with AT&T could make the companies large enough to dstand toe-to-toe against Disney, which is known as the most powerful content company in the world. However, all of this could be threatened if Donal Trump gets elected as president, as he has previously stated that he would block the deal, as reported by the International Business Times.
"As an example of the power structure I'm fighting, AT&T is buying Time Warner and thus CNN - a deal we will not approve in my administration because it's too much concentration of power in the hands of too few," Trump said, according to CNN.