Two words are circulating in Telecom companies their fear of the radical change in the industry to the point: “stupid line”. Decades were the fronts in the media business: The a buildings networks for fast Internet and telephony, the other, you dined with content. Now companies such as Netflix and Amazon on whirling Online with your own media offers the business of more established companies. Network operators fear to be downgraded with your data pipelines and cheap transportation of your down, media companies will lose customers. With the purchase by Time Warner of the U.S. Telecom group AT&T, hold – through sheer mass wants to<./p>
create A new media giant with a market value of more than $ 300 billion AT&T CEO Randall Stephenson, and Time-Warner-Arm Jeff Bewkes. Including debt, AT& given;T 108,7 billion dollars for the purchase of the US media group, and turns more and more to the content providers. The competition authorities by waving the Federal government, this would be the largest corporate deal of the year – still far ahead of the 66-billion-Dollar purchase of US-genetic engineering company Monsanto by the German pharmaceutical giant, Bayer.
The two companies complemented each other perfectly, – said AT&T chief Stephenson. With the Deal, the telecommunications companies have in the future about “the world’s best Premium content, and the networks to deliver them to every screen, whenever the customers want”. It was a big Nuisance for the customer, that you pay once for content and then not everywhere and on any device to access it, said Stephenson. “Our goal is to change that.”
more Difficult to fight against attackers, Netflix, and Amazon
Through the Acquisition, AT&T CEO Stephenson is trying to develop new sources of money. Like other network operators, the revenue way to crumble to the group in the classic core business, with the passing of content. All Telecom companies are therefore looking for opportunities, even in the media business. Time Warner opens AT&T with its Offerings for entertainment, news and sports the Chance. The media group owns television channels such as CNN and HBO (“Game of Thrones”), the related Hollywood Studio Warner Bros. owns the rights to blockbusters such as “Batman” and “Harry Potter”. The company also holds a ten per cent, on Netflix competitor Hulu.
The Cut and thrust of the provider in the media market upside-down swirls of the branches involved. Online movies from providers such as Netflix and Amazon, more and more Fans win. Nearly all of the cult series can be found on the streaming services over the Web.
Long ago, the company self-producing a successful series, as of rooms, and sometimes even prices – Amazon, for example, with the Emmy-winning series “Transparent,” or “Mozart in the Jungle”, for which the company received the Golden Globe. Netflix was one recently already 86.7 million subscribers. Together invested, Netflix and Amazon expected according to the analysts of IHS, Markit in the last year, 7.5-billion-Dollar in-house productions – more than CBS or Warner’s HBO.
Whether it is the new partners manage to parry the attack of the aggressive competition alone due to size, you have to prove to the Manager. Similar frets have disappointed the high expectations so far. Time Warner failed with the ideas for one of the largest media corporations in the world, as the company merged with AOL. Bewkes, the AOL had to sell leftovers later in the stock market at a bargain price. The purchase of NBC Universal with the transmitter chain and the movie studios brought the cable group Comcast nearly as much as once hoped. With the Takeover of the strip, such as “Shrek” responsible for animation studios, Dreamworks, Comcast has nevertheless recently.
Deal with the financial explosive power
experts doubt that the infrastructure companies to Shine through the purchase of content producers on the market, because they are expensive and work in completely different fields of business. The risk could reduce by Telekom to acquire companies only exploitation rights. Such critical voices, however, play no role. Corporations such as AT&T want more access to customers and could hardly stand idly by when the competition gets the best of companies.
With the purchase of Time Warner, the U.S. Telecom stalwart AT&T is taking a large financial risk. The AT&T group, which dates back to the beginnings of the telecommunications networks of the United States is already in debt to the tune of 120 billion dollars. Last year, the company had purchased for its media expansion, the satellite TV provider DirectTV for nearly 50 billion dollars.
Apparently, wanted to the AT&T-head with Time Warner also competitors. According to the “Wall Street Journal” Apple’s thrown an eye on the media group and a few months ago contact with Time Warner for a possible merger. AT&T competitor Verizon, AOL and the Huffington Post, has a current interest in the Acquisition of Yahoo. Last year was also Rupert Murdoch’s media group Twenty-First Century Fox for Time Warner. But its CEO, Bewkes rejected the offer.
The business with AT&T has been approved by both companies tips, acting unanimously, announced the companies. “A great day for Time Warner and its shareholders,” said Time Warner CEO Bewkes. He hopes his company in good hands, when he transfers soon. According to current plans, it remains Time-Warner-in-chief, as long as the antitrust authorities of the merger, check, and then still for a long time, before ceding to “a smooth Transition”. He left open how long it will take.
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