Business - - Nov 15,2016
World’s second largest service provider of mobile telephone AT&T is buying Time Warner shares in a massive US$ 85.4 billion deal. The merger of AT&T and Time Warner would transform AT&T from a wireless, landline and satellite TV corporation into one of the most key broadcasting houses in the nation. The contract has been permitted unanimously by the boards of executives of both corporations.
It’s now official that AT&T has agreed to buy the world's third largest television network Time Warner Inc., which holds Warner Bros. studios, CNN, TNT, HBO and other TV channels, at a 35% premium over its market price. According to AT&T executives, the deal would benefit its customers by leading to new innovations. At present AT&T has more than 25 million American families purchasing TV series through AT&T DirecTV and U-verse units. AT&T has almost 130.4 million wireless subscribers and 15 million broadband clients.
AT&T is planning to use Time Warner’s content to improve new techniques to distribute entertainment over its wireless system. AT&T Inc. is one of the biggest telecommunications company in entire world on basis of revenues, whereas Time Warner Inc. is presently world’s third leading television networks and film television and Entertainment Corporation.
This massive merger of these both (AT&T Inc. and Time Warner Inc.) companies will lead the next movement of innovation in converging media and communications business into the entire worlds. AT&T Inc. has unmatchable direct-to-client supply across broadband in the US, TV in Latin America and mobile in Mexico. The future of mobile is video and the future of video is mobile. This deal combines Time Warner’s Inc. content and facility will create a new content that joins with the target audiences around the world.