The telecom giant AT&T on Saturday announced an agreement to 108,7 billion dollars to buy Time Warner, which owns tv channels CNN and HBO and movie studios Warner Bros, creating a giant american media.
The agreement, which values Time Warner at more of 85.4 billion dollars, is “a perfect assortment of two companies with complementary strengths that can bring a new vision of how the industry of media and telecommunications is working for customers, content creators, distributors and advertisers,” said the president of AT&T’s Randall Stephenson in a statement.
Action 107,50 $
The wedding, which should be finalized by the end of 2017, will be in cash and in shares. The shareholders of Time Warner will own and between 14.4 per cent and 15.7 per cent of the new entity and those of AT&T the balance of the capital. The shareholders of Time Warner will receive 107,50 dollars per title, which adds value to the media group at 85.4 billion dollars. Including debt, the transaction amounted to 108,7 billion, details of AT&T, which is hoping to achieve a billion dollars of savings in synergies within three years following the closing of the transaction potentially beneficial to its results.
it remains subject to the green light from the u.s. Justice department (DoJ), who could potentially veto if it considers that it violates the rules of the competition. The new group AT&T-Time Warner will have activities that will go from the phone to the media through the cable and the Internet. It will be a juggernaut as well in the content as in the pipes, with large market shares in these two sectors at the margins very lucrative, particularly content that attract : Amazon, Netflix, and now Google.