AT&T buying HBO and CNN owner Time Warner for $85.4 billion

AT&T buying HBO and CNN owner Time Warner for $85.4 billion

AT&T has reached an agreement to acquire Time Warner for $85.4 billion, combining the telecom and entertainment companies to create a media giant. That's the closest parallel to AT&T's proposed blockbuster purchase of the parent company of CNN, HBO and Warner Bros., among others. AT&T had been scheduled to report results on Tuesday but instead released them less than an hour after announcing its acquisition of Time Warner.

AT&T will pay $107.50 a share - a big premium over where Time Warner stock was trading last week.

The American Cable Association, which represents independent US cable TV operators, said on Saturday that "combining valuable content with pay-TV distribution causes harm to consumers and competition in the pay-TV market", and urged regulators to closely examine the deal.

Traditional audiences are dropping off: Some 1.4 million USA customers cancelled paid television subscriptions in the past year, according to research house SNL Kagan. Bewkes has served as Time Warner's CEO since 2008.

"Additionally, Comcast's purchase of NBC concentrates far too much power in one massive entity that is trying to tell the voters what to think and what to do".

Representatives of his Democratic rival, Hillary Clinton, did not immediately respond to a request for comment.

More news: Obama commutes dozens more lengthy sentences

Time Warner is one of the largest producers of premium TV shows and movies in the world. It even has a 10 percent stake in Hulu. The trend of "cord-cutting" - people getting TV over the internet - has eaten into the cable subscriptions that are vital to its networks.

AT&T called the deal "a ideal match of two companies with complementary strengths" when it announced the deal Saturday, but consumer groups are expressing concern, saying the new media colossus could limit consumer choice and spur more industry consolidation.

If the deal is approved, regulatory conditions could limit AT&T's ability to favor Time Warner video or give AT&T customers better deals.

"There's no competitor being removed from the marketplace, there's no competitive harm that is being rendered by putting these two companies together", said Stephenson. He believes the combination already is "vertically integrated in all but name".

Two years ago, Time Warner rejected a takeover bid from Rupert Murdoch's 21st Century Fox valued at $85 a share.

Yesterday we reported that AT&T was looking to snag Time Warner and they wanted to get the deal done quickly.

More news: Clinton, Trump stage dueling rallies as race narrows

The telecom and media sectors have been consolidating.

The venerable phone company has to contend with slowing growth in wireless services, given that most Americans already have smartphones.

The cash portion of the deal will be funded with cash and new debt.

This would also be the second megamerger for AT&T in the past year.

AT&T has only $7.2 billion in cash on hand. "Deals like this destroy democracy". The company sees $1B in annual run rate cost synergies within three years of closing. It hiked its quarterly dividend by a penny to 49 cents per share.

"DirecTV and Time Warner in a lot of ways is more similar than Time Warner and AT&T", he said.

More news: Obama Avoids FBI Mention While Campaigning for Clinton in Ohio

Programming and advertising present new ways to grow - though, given the problems the media industry is having, which are part of the reason that Time Warner is up for sale in the first place, they are not sure things. And new mobile technology including next-generation 5G networks could make a content tie-up especially attractive for wireless providers. He added that it's now proving to be true for the mobile screen.

Related:

  • Trump gains ground on Clinton as White House race tightens

    Trump gains ground on Clinton as White House race tightens

    Clinton has blasted Comey for taking a "vague approach" in announcing emails found on Weiner's laptop were related to her. She does not, for example, enjoy the same support among African-Americans as Obama, the first black US president.
    UK's Johnson: Court ruling won't interfere with Brexit plans

    UK's Johnson: Court ruling won't interfere with Brexit plans

    A byelection will be held, and the resignation reduces May's already slender Conservative majority in the House of Commons. If Parliament considers this, the plausible course will be to order a second referendum, or a national election .
    Redknapp: Coutinho has become Liverpool's talisman

    Redknapp: Coutinho has become Liverpool's talisman

    Does Neymar want Coutinho at Barca? David Silva, Kevin De Bruyne and Mesut Ozil are all brilliant players. We have covered it on more than one occasion.
  • Mean Streets of Gadgetzan is Hearthstone's fourth major expansion

    Mean Streets of Gadgetzan is Hearthstone's fourth major expansion

    They include the Lotus Assassin card, a rogue minion with stealth that regains its stealth whenever it kills an enemy. For instance, the Kabal have access to trifocals cards that work across mage, priest, and warlock decks.
    Android is as secure as the iPhone - Google

    Android is as secure as the iPhone - Google

    There was a lot of anticipation around the two phones, and now that they are here, the excitement is indeed widespread. It was reported last week that Google Pixel, Pixel XL shipments in the USA were delayed as demand exceeded supply.
    US Supreme Court temporarily stays execution of Ala. man

    US Supreme Court temporarily stays execution of Ala. man

    Vernon Madison, convicted in the 1985 murder of Mobile police officer Julius Schulte, was scheduled to be executed in May. Arthur was in the Decatur facility because he was convicted in the 1977 shooting death of a woman in Marion County.
  • Klopp hints at January signings

    Klopp hints at January signings

    If something was wrong since I'm here, or will go wrong while I'm here in the future with transfers, it's my responsibility. But Klopp added: 'I will always have the final say, maybe that's the most important thing for you to know.
    Windows 10 version of COD: Infinite Warfare multiplayer has a big caveat

    Windows 10 version of COD: Infinite Warfare multiplayer has a big caveat

    If you're getting the digital version of Infinite Warfare , expect the download size to jump from 45GB to about 51GB. Starting on Saturday you can play Call of Duty: Infinite Warfare in 4K on the PS4 Pro at select Best Buy locations .
    Brad Pitt seeks joint custody in divorce from Angelina Jolie

    Brad Pitt seeks joint custody in divorce from Angelina Jolie

    The pair recently sold a home they purchased in New Orleans' French Quarter for US$4.9 million (NZ&6.7 million). To make matter worse for Brad, the family and more specifically, the altercation is being investigated by DCFS.
  • Mississippi State elevates baseball coach John Cohen to athletic director

    Mississippi State elevates baseball coach John Cohen to athletic director

    As a baseball player at MSU, Cohen helped the Bulldogs win the 1989 SEC championship and trip to the 1990 College World Series. Cohen, 50, has spent over two decades coaching college baseball and has been the head baseball coach at MSU since 2009.
    Derrick Rose, Joakim Noah deserve standing ovation from Chicago, Bulls say

    Derrick Rose, Joakim Noah deserve standing ovation from Chicago, Bulls say

    Game highlights: Evan Fournier scored 29 and Serge Ibaka added 17 to lead the host Magic to a 102-94 victory over the Kings. The Knicks finished with a season-high 32 assists, which is well above the 19.3 NY was averaging leading into this game.
    Chelsea yet to speak with Mikel over new deal - Conte

    Chelsea yet to speak with Mikel over new deal - Conte

    They last won five in a row in a single season in December 2013-January 2014. "Lukaku for sure is a very good player". They expect to get the kind of results in the capital indicative of a team with top-four aspirations.

Comments

Latest news

Bishoo, Gabriel lead Windies fightback
Unpredictable batting of Pakistan was rocked by West Indies bowlers as two batsmen got out in very first over of the innings. Brathwaite played 318 balls and hit 11 boundaries in his unbeaten 142-run innings.

Warriors game day: Can Golden State limit Anthony Davis?
Even after losing arguably one of the best players in the world, Kevin Durant, Russel Westbrook won't be holding back this season. The Pelicans found some success employing a small lineup, especially as Frazier mined through creases in the Warriors defense.

Police investigate homophobic leaflet at West Ham
West Ham have now promised to ban 200 of its own supporters from going to matches. Likewise a spokesman from Chelsea reflected the mood of frustration and disgust.

Apple to offer MacBook Pro 2017 with 32GB RAM at cheaper price
He revealed that the new MacBook Pro is now the fastest selling laptop from Apple . Lately, Apple seems to be in a habit of making everything very inconvenient.

Beyonce-Dixie Chicks collab sparks a clash on social media
Within a couple hours, the CMAs made the situation ten times worst and deleted all evidence of Beyoncé's performance. Following the statement, the association started to include photos of Beyoncé and Dixie Chicks in new posts.

China's Dalian Wanda To Buy Dick Clark Productions For $1 Bln
Wanda's expanding entertainment and tourism sector spans movie cinemas, theme parks and film production. Wanda is among the Chinese companies that have been spreading money around the industry in the US.

What's next for Russ, OKC after big Oladipo and Adams contracts?
James Herbert from CBS Sports says Adams is one of the best young big men in the league, and is primed for a breakout season . He does serious work in the post on both ends of the court, averaging 8.0 points, 6.7 rebounds and 1.1 blocks a year ago .

108-year-old Cubs fan celebrates World Series victory
Ross and the other players put their arms around each other and sang "Go Cubs Go" from the stage along with the blissed-out crowd. The parade will wind its way downtown an hour later and end in Grant Park for a rally expected to start around noon.

Devastating scenes as flaming 'Jungle' is cleared
The prefecture said 539 unaccompanied minors were being housed in heated containers at the camp pending evaluation. Stoltenberg told reporters Thursday that ships and aircraft will be deployed to help for two weeks.

UK's May seeks to keep Brexit plan going despite setback
The opposition Labour Party is in disarray and its leader Jeremy Corbyn does not enjoy strong support from his party's legislators.

Clinton, Trump in North Carolina as days to campaign dwindle
Republicans are battling ferociously to protect their 54-46 majority in the Senate ahead of Tuesday's election. Sure, do everything you can do support the Democratic presidential candidate beat Donald Trump , Sanders said.

Broncos send Aqib Talib for second opinion on back
Tennessee has quietly been one of the more surprising teams in the National Football League this year, battling to a.500 record. Most people expected the Broncos to be good this season, but hardly anyone expected the kind of start the Raiders have had.

UCLA QB Josh Rosen done for season, Jim Mora confirms
This is a team with Pac-12 championship and Rose Bowl aspirations, and they know they got away with one on Thursday. On offense, the Buffaloes have fared well against UCLA the last two seasons, rolling up 1,054 total yards.

Will Jay-Z/Beyonce event help Clinton energize black voters?
A Cleveland pastor is not impressed with Hillary Clinton using a Jay Z concert to persuade OH youth to back her. At one point, Clinton's famous quote about not "staying home and baking cookies" flashed on the big screens.

Veteran Aduriz and Mata back in Spain squad
Sergio Escudero has earned his maiden global call-up for La Roja , on the back of an impressive start to the season for Sevilla. Andres Iniesta and Jordi Alba also miss out on the 25-man squad through injury, as does Santi Cazorla.

Other news