They re 85 4 billion dollars United States media industry Council AT T announced

They're 85.4 billion dollars! United States media industry Council: AT&T announced the acquisition of time Warner

AT&T Time Warner agreed to pay $ 107.50 per share payment structure will be half cash and half stock. Loan supervision of most network ready the same

Biggest deals of the year is about to settle.

United States October 22, United States telecom operator United States telephone and Telegraph Company (AT&T) that will be US $ 85.4 billion (approximately 577.765 billion million) acquisition of United States media and entertainment giant Time Warner.

This acquisition will be half cash and half stock, $ 107.50 per share, representing time Warner stock market closing price 20% of the 21st.

In a statement on the same day, AT&T, Chairman and CEO of landeer·sidifensen (Randall Stephenson) said: “for us the two companies complement each other, this is a perfect acquisition. ”

He said, this will change the way the operation of the media and communications industry, to customers, content providers, distributors and advertisers a new experience.

Analysts noted that this was the United States Telecom operators transformation into another move of the media industry.

The Wall Street Journal, citing people familiar with the news that the CEO AT&T company landeer·sidifensen will lead the new company, Time Warner CEO Jeff Bewkes (Jeff Bewkes) will leave at the end of the transition period after the acquisition.

Before news of the merger talks, AT&T and Time Warner’s market value of $ 233 billion and $ 68 billion, respectively.

On October 21 after the news, shares of time Warner closed up 7.8% trading briefly up more than 4% to $ 94 a share, eventually tiring up about 2.8%. AT&T share prices opened low and closed down about 3%.

According to CNN reports, than Fox and Stephenson said on a media conference call, two companies start from August this year to discuss a deal. Two people in New York, “short”, and the rest of the story in their own words, “talking more, buy more molding.”

“Our view is similar. This acquisition has what everyone’s saying, ‘ pull ‘ effect, we soon begin terms of negotiations. “Stephenson added.

The Wall Street Journal was also informed that, Time Warner has agreed to, if the company eventually accept offers from other buyers is higher than AT&T, Time Warner will pay a breakup fee of $ 1.7 billion. If the final acquisition is blocked, AT&T will pay time Warner $ 50 million as compensation.

Once a takeover, the original AT&T your wireless network provider will become a new media empire, in addition to sitting on the outside pay TV and millions of wireless subscribers, will also have a time Warner includes CNN, TNT, HBO television, Warner Brothers film and television studios and gold media resources.

They're 85.4 billion dollars! United States media industry Council: AT&T announced the acquisition of time Warner

Warner Bros.

With the saturation of AT&T core wireless business, this acquisition for the company to find new growth areas. Acquisition timing coincides with when the transition pressures on media companies, including Time Warner enterprises are facing difficulties, is, merge, pay TV distributors, as well as the audience began to abandon expensive TV package and switch to cheaper online streaming services.

Previous marriage with the two giant mergers and acquisitions with the same ambition, also dating back to the 2009 Comcast (Comcast Corp.) to $ 30 billion takeover of NBC Universal (NBC Universal), and also describes the contents of the media and telecommunications sectors integrate and release resources. AT&T acquisition of time Warner, once completed, will work with Comcast to form a direct confrontation.

See from the timetable, this acquisition requires regulatory scrutiny, expected end date by the end of 2017.

The deal has just been finalized, it has drawn much attention. Last round of the just-concluded presidential election debates Republican candidate Trump said publicly that if he is elected, his Administration will not agree to AT&T and Time Warner merger, because he “opposed to further consolidation of the media industry”, and claims that “this takeover will destroy democracy.”

The Wall Street Journal, citing analysts Michael Nathanson’s view, Time Warner called “last size and content providers can purchase”, because the other big media companies like Disney either as too expensive and almost impossible to acquire, or like the 21st Century Fox, Colombia broadcasting company and Viacom that family-controlled. “For future of nonlinear consumption, HBO and the Turner (the parent company of CNN) and Warner Brothers are quite good assets. ”

From the perspective of time Warner, this acquisition is 64 years old than x is a big success, because two years ago, he flatly refused to 21st Century Fox of 85 dollars per share takeover offer, was also criticized.

In recent years, AT&T a positive content to seek restructuring through acquisitions. It has been working with prominent media executives Peter Chernin VCs project set up and was involved in bid for Yahoo earlier this year.

Once reached, it will be the largest media acquisitions in recent years, probably will drive more merger and acquisition projects.

The times believes that the price after the merger is completed, production and media companies in the future with a large service provider in mergers and acquisitions, will have more negotiating leverage.


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