Sunday, 23. October 2016
A huge business on the stage: The US group AT&T takes over the media company Time Warner with CNN, HBO and Warner Bros. To additional perfect it. Presidential candidate, Trump criticized the business focus.
In the United States, a Mega-Acquisition is on the horizon: The Telecom group AT&T swallows Time Warner, and thus advances far into the media business. It was agreed, according to the company the purchase price in the amount of 107,50 dollars per share – well above the recent price of 92.50 dollars. This resulted in a purchase price of 85.4 billion dollars (78 billion euros). Including the assumption of debt, the total of 108.7 billion dollars. The boards of both companies have approved the business, acting unanimously, announced AT&T.
The Acquisition of Time Warner mean the merger of the two companies complement each other perfectly, said AT&T CEO Randall Stephenson. “A big Nuisance for the customer is that you pay once for content and then not everywhere and on any device have access to it,” says Stephenson. “Our goal is to change that.”
Stephenson expressed confidence in the potential concerns of the regulatory authorities to address it. “It’s not a competitor out of the market, there are no restrictions of competition caused by the merger of these two companies,” he said. Time Warner CEO Bewkes said it was a “great day for Time Warner and its shareholders”. Both groups had the modern media and communication landscape.
Trump would Veto
U.S. presidential candidate Donald Trump announced in a speech in Gettysburg in the state of Pennsylvania, of the proposed Acquisition, in the case of an electoral victory, not to vote for. The Deal would mean too much power in too few hands, and stands as a perfect example for “those power structures, I’ll fight”. Anyway, the media would already “too few controls,” said the Republican.
The merger is expected to be completed by the end of 2017, the US authorities, and Time-Warner must shareholders approve. The Deal is the largest corporate takeover in 2016, ahead of the 66-billion-Dollar purchase of US-genetic engineering company Monsanto by the German pharmaceutical giant, Bayer. Before the first speculation about the Takeover emerged, the market value of the media group at 68 billion dollars, while AT&brought it to about 233 billion.
AT&T wants to pay the price is to be paid half in cash and half in its own shares. In financial circles, had already been speculated that Time Warner CEO Jeff Bewkes to be a media company for sale could make. To include Time Warner TV channels such as CNN and HBO (“Game of Thrones”) as well as the Hollywood Studio Warner Bros. (for”Batman vs. Superman”, “Harry Potter”). The company also holds a ten percent stake in Netflix rival Hulu.
two years Ago, had already recognized competitor 21st Century Fox from the Empire of media magnate Rupert Murdoch to a Takeover, but finally gave up. Time Warner had to beat an offer of $ 85 per share. According to the “Wall Street Journal” took a couple of months ago Apple touch with Time Warner to discuss a merger.
AT&T is following the Trend
For AT&T, represents the acquisition is quite a financial risk. The group is already in debt to the tune of 120 billion dollars and must impose on the Deal more Time-Warner-debts of more than $ 20 billion. Shareholders had responded after the first media reports about a possible Takeover skeptical and the AT&T shares fall. The company had purchased in 2015 for almost $ 50 billion on the satellite-TV provider DirectTV.
experts criticized also, to acquire AT&T a lot of money for the purchase of the content-production issues instead of at significantly lower prices, only utilization rights. It is unclear what savings could bring the consolidation of the distribution infrastructure and content, said Doug Creutz of investment Bank Cowen and co. “it’s been tried already and was never going to work.”
With the Takeover of the largest US telecommunication group ventured into the business of TV and film content. So AT&T a trend in the industry – the Telecom companies are looking for new, stable sources of money, and exclusive content for their networks because the revenues are in the classical core business is under pressure. Thus, the cable provider Comcast bought in the USA in 2011, NBCUniversal, with the same name, NBC network and the Universal film Studio.
The largest AT&T rival Verizon, which already AOL with Online media like the Huffington Post, wants to take over the Internet pioneer Yahoo. However, this Deal could be known of the massive Hacker-attack on Yahoo, with at least half a billion of the affected users falter. In 2000, Time Warner was gone with AOL, what with mergers, meanwhile, is considered one of the greatest failures of mergers.