AT&T reaches deal to acquire Time Warner for US$85.4b

Source: Xinhua | October 23, 2016, Sunday |

Online Edition

AT&T Inc. reached an agreement Saturday to buy Time Warner Inc. for US$85.4 billion with an aim to reshape the mobile company into a media giant.

The wireless carrier will acquire Time Warner in a stock-and-cash transaction valued at US$107.50 per share. The agreement has been approved unanimously by the board of directors of both companies.

This purchase price implies a total equity value of US$85.4 billion and a total transaction value of US$108.7 billion, including Time Warner's net debt.

Time Warner is a media and entertainment giant with a great portfolio of content creation and aggregation, plus iconic brands across video programming and TV/film production.

"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," said Randall Stephenson, AT&T chairman and CEO.

The deal combines Time Warner's vast library of content and ability to create new premium content that connects with audiences around the world with AT&T's extensive customer relationships, the world's largest pay TV subscriber base and leading scale in TV, mobile and broadband distribution.

"This is a great day for Time Warner and its shareholders. Combining with AT&T dramatically accelerates our ability to deliver our great brands and premium content to consumers on a multiplatform basis and to capitalize on the tremendous opportunities created by the growing demand for video content," said Time Warner Chairman and CEO Jeff Bewkes.

Bewkes said the deal is a "natural fit between two companies with great legacies of innovation that have shaped the modern media and communications landscape."

"My senior management team and I are looking forward to working closely with Randall and our new colleagues as we begin to capture the tremendous opportunities this creates to make our content even more powerful, engaging and valuable for global audiences," Bewkes added.

AT&T and Time Warner will host a webcast presentation to discuss the transaction and AT&T's third quarter earnings on Monday.

On Friday, Time Warner shares rallied 7.82 percent to close at US$89.48, while AT&T dipped 3 percent to close at US$37.49.

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AT&T reaches deal to acquire Time Warner for US$85.4b

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