Monday, October 24, 2016

AT&T Time Warner does

With the Acquisition of Time Warner is AT&T into the media business. The Mega-Deal is expected to be completed by the end of 2017. The consent of the authorities.

The U.S. group AT&T has announced on Saturday the Takeover of the media company Time Warner, CNN, HBO, Warner Bros., as well as 10 percent of the Neflix-competitor Hulu, for of 85.4 billion dollars. Including debt, the AT&T takes the value of Trasnaktion in the case of 108.7 billion dollars. Time Warner shareholders will receive 107,50 dollars per share, from $ 53.75 in cash and 53,75 in stock. A portion of the cash consideration to be financed with new debt. The Deal would be the largest corporate takeover this year. However, regulators need to agree to.

(image: AT&T)

AT&T, the acquired only in 2015, the satellite-TV provider DirecTV for around $ 49 billion, this Acquisition into the business with TV and film content. The largest US telecommunications group by the merger of the first American mobile operator, the country can compete with cable providers in the areas of broadband and Video. AT&T wants to call not only the network, the Videos will be viewed, but also the Content itself. With the huge Acquisition of Time Warner, AT&amp could create;T the Basis for a comprehensive Over-the-top video service.

“This is a perfect combination of two companies with different Strengths, the fresh Wind in the work of the media and communications industry with clients, Content producers, distributors, and advertisers can bring,” says Randall Stephenson, Chairman and CEO of AT&T. “Premium content always win. That has come true on the big screen, on the TV screen and now on the mobile screen. We will offer the best Premium Content in the world with the best network, in order to bring it to every screen".

“This is a big day for Time Warner and its shareholders. The merger with AT&T allows us, our great brands, and Premium-content and the consumer-significantly faster on multi-platform Basis and to take advantage of the enormous opportunities arising from the growing demand for Video Content," writes Time Warner Chairman and CEO Jeff Bewkes in a statement. “That was one of our key strategic priorities and we are making good progress – both in terms of the partnership with our distributors as well as by the fact that we connect directly with consumers”.

The organization of Free Press, criticized the proposed merger of AT&T and Time Warner. Free Press Policy Director Matt Wood said on Saturday: “Big mergers such as this cause people to eventually pay higher prices in order to Finance the borrowed money for these Deals, and the “Golden parachutes”. The transactions are driven by the desire of Wall Street to a fast growth at any price. And that’s exactly how it came to be increases after the AT&T purchase of DirectTV to price, there is again good reason to assume that this potential could be for Internet users and TV viewers expensive".

in Parallel to the announcement of the Time Warner Deals published AT&T, the results of the third quarter. AT&T reported a profit of 0.54 Dollar per share and a turnover of 40.9 billion dollars. The operating profit rose by 8.2 percent compared to the previous year.

[Material from Jake Smith,]


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