AT&T Announces Plans to Buy Time Warner

By Paula Bernier October 24, 2016

AT&T over the weekend revealed plans to purchase Time Warner Inc. in a deal valued at more than $85 billion, driving down both of their stocks and drawing comment from the Clinton and Trump presidential campaigns.

The $107.50 per share deal, if it passes regulatory muster, will provide AT&T with a broad array of high-value content from the world’s largest film/TV studio, which the network operator could deliver over its various networks and to an array of customer endpoints. That includes content from HBO, including Game of Thrones, Silicon Valley, True Detective, Veep, and much more. Time Warner also owns the Turner TV properties, which includes Cartoon Network/Adult Swim, CNN, TBS, and TNT; rights to March Madness, MLB, and NBA; and digital and over-the-top brands including Bleacher Report, CNN.com, Fandago, and Hulu. Warner Bros. is also part of the Time Warner family and includes entertainment television (such as Big Bang Theory), feature films (including the DC Comics and Harry Potter series), home video, and videogame businesses.

“Premium content always wins,” commented AT&T Chairman and CEO Randall Stephenson. “It has been true on the big screen, the TV screen, and now it’s proving true on the mobile screen. We’ll have the world’s best premium content with the networks to deliver it to every screen. A big customer pain point is paying for content once but not being able to access it on any device, anywhere. Our goal is to solve that.”

For its part, AT&T has wireline and wireless networks that deliver data, telephone, and video services in the U.S.; a mobile network in Mexico; and TV assets in Latin America. The company notes that it expects to use its technological experience and vast resources to do analysis in an effort to provide more relevant content to customers and introduce new business models, including ad-supported content.

Stocks of both companies dropped following the announcement of their planned combination – with AT&T’s down 2 percent and Time Warner’s falling off 3 percent. Meanwhile, both Clinton and Trump camps expressed concern that the pairing of these two media giants will provide the resulting company with too much power and lead to less competition.

Despite such concerns, however, combinations of giant content companies and network operators seem to be a growing trend. Comcast and NBC came together in 2011, Verizon and AOL joined forces in 2015, and Verizon earlier this year announced plans to buy Yahoo.




Edited by Alicia Young

Executive Editor, TMC

SHARE THIS ARTICLE
Related Articles

Bloomberg BETA: Models Are Key to Machine Intelligence

By: Paula Bernier    4/19/2018

James Cham, partner at seed fund Bloomberg BETA, was at Cisco Collaboration Summit today talking about the importance of models to the future of machi…

Read More

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More

Satellite Imaging - Petabytes of Developer, Business Opportunities

By: Doug Mohney    4/11/2018

Hollywood has programmed society into believing satellite imaging as a magic, all-seeing tool, but the real trick is in analysis. Numerous firms are f…

Read More