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”.