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Is It Worth for AT&T to Acquire Time Warner?

AT&T, the communications and digital entertainment services that also owns the U-Verse wireline fibre optic service and Digital TV, has signed a memorandum to enlist media and entertainment conglomerate Time Warner Inc. for US $85.4 billion. But, the amalgamation of a telecommunications firm with a media company has raised so many accusations among the followers. However, the chairman and CEO of Time Warner, Jeff Bewkes called it “a natural fit between two companies.”

“AT&T Inc. and Time Warner Inc. today announced they have entered into a definitive agreement under which AT&T will acquire Time Warner in a stock-and-cash transaction valued at $107.50 per share. The agreement has been approved unanimously by the boards of directors of both companies,” AT&T said in a statement.

No other reason ever exists behind any new implementation, deal and partnership except, growth and power in terms of both, the money and the goodwill. Time Warner is a major cable internet service provider and also runs CNN, HBO, Warner Bros and a range of businesses that make movies, TV shows and websites. In that case, the combined business will have the benefits of having a plethora of wireless and television subscribers for its media lineup.

On other side, AT&T, which began its life as a telephone company and later started services like fiber, DSL and mobile connections as well as TV services, facing a stagnating growth in its core businesses for a while and believed to have growth in its core wireless market with these above mentioned TV shows, videos and websites.

AT&T’s network is very good and carries various platforms and now by adding Time Warner, it will help the firm to further diversify its business on the other side of internet services and wireless phone. Besides, Time Warner also comprises “The Big Bang Theory” Warner Bros, “Game of Thrones” on HBo, “Anderson Cooper 360” on CNN, and Basketball games, aired by various Turner cable channels. These are no strangers to anyone today. Acquiring Time Warner will also come as an effective move for AT&T to shape the future of media such as news, sports and entertainment.

Randall Stephenson, AT&T chairman and CEO, said about this deal, “It’s a great fit, and it creates immediate and long-term value for our shareholders.This is a perfect match of two companies with complementary strengths who can bring a fresh approach to how the media and communications industry works for customers, content creators, distributors and advertisers.”  Read more News.

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Is It Worth for AT&T to Acquire Time Warner?
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