AT&T’s mega deal for Time Warner

New York, October 23

AT&T has unveiled a mega deal for Time Warner that would transform the telecom giant into a media-entertainment powerhouse positioned for a sector facing major technology changes.

The stock-and-cash deal is valued at $108.7 billion including debt, and gives a value of $85.4 billion to Time Warner — a major name in the sector that includes the Warner Bros. studios in Hollywood and an array of TV assets such as HBO and CNN.

It would give the big US telecom firm “the world’s best premium content with the networks to deliver it to every screen, however customers want it,” a statement from the companies said yesterday.

The tie-up, which could face tough antitrust scrutiny, makes AT&T a strong rival to Comcast, which owns Time Warner rival NBCUniversal, and aims to counter the growing threat from online services such as Netflix and Amazon.

It also positions AT&T against longtime telecom rival Verizon, which has acquired Internet group AOL and is in the process of buying Yahoo, and against new delivery platforms expected from Google and others. — AFP