Following reports that AT&T, the nation's second-largest wireless carrier, held talks regarding a possible acquisition of Time Warner, AT&T has now formally confirmed that it will be purchasing the entertainment conglomerate in a stock-and-cash transaction valued at $107.50 per share. The purchase price implies a total equity value of $85.4 billion and a total transaction value of $108.7 billion.
The agreement has been approved unanimously by the boards of directors of both companies. It gives AT&T access to Time Warner's precious media properties like CNN, HBO, TNT and Warner Bros, as well as films like Harry Potter, Batman, Superman and next-generation super hero movies being developed by DC Comics.
The blockbuster merger, pending regulatory approval and closing before year-end 2017, will create a unique company that'll “define the future of media and communications”.
U.S. wireless carrier is buying media entertainment conglomerate Time Warner for a reported $80 billion as consolidation continues in media and technology industries. AT&T has reportedly agreed to pay $107.50 a share in a half-cash, half-stock deal, The Wall Street Journal reported Saturday. Time Warner, which does not have a controlling shareholder, reported $28 billion in 2015 revenue.
The media giant had a market capitalization of $68 billion before rumors of a possible takeover bid. AT&T currently has a market capitalization of more than $230 billion.
AT&T, the second-largest carrier in the United States, is in advanced talks with media giant Time Warner about a possible merger and Apple “is now monitoring the situation”, people familiar with the matter told the Wall Street Journal. The Cupertino-based gadget maker was first mentioned as a possible suitor for a Time Warner takeover back in January of this year.
According to WSJ, Apple a few months ago approached Time Warner “about pursuing a combination”, but the discussions didn’t progress “beyond a preliminary stage.”