AT&T To Buy Time Warner For $85 Billion
AT&T announced plans to acquire New York City-based Time Warner Inc. The deal has been approved by both companies in a half-cash, half-stock deal at $107.50 per share. The deal is estimated at $85.4 Billion or $108 Billion with Time Warner’s net debt. Time Warner’s library of content plus original created content are also included in the deal. The acquisition is expected to be complete by the end of 2017, pending approval by the U.S. Department of Justice.
“This is a great day for Time Warner and its shareholders. Combining with AT&T dramatically accelerates our ability to deliver our great brands and premium content to consumers on a multiplatform basis and to capitalize on the tremendous opportunities created by the growing demand for video content. That’s been one of our most important strategic priorities and we’re already making great progress — both in partnership with our distributors, and on our own by connecting directly with consumers.” Time Warner Chairman and CEO Jeff Bewkes said in a statement. “Joining forces with AT&T will allow us to innovate even more quickly and create more value for consumers along with all our distribution and marketing partners, and allow us to build on a track record of creative and financial excellence that is second to none in our industry. In fact, when we announce our 3Q earnings, we will report revenue and operating income growth at each of our divisions, as well as double-digit earnings growth.”
Bewkes will stay with Time Warner while the transaction is in progress. Time Warner owns television, film, and internet operations including HBO, Warner Bros. film franchises include Harry Potter & DC Comics, cable networks, including TNT, TBS, CNN and Cartoon Network/Adult Swim.