In what could be this year’s biggest deal, AT&T agrees in principle to buy Time Warner for $85 bn

By October 22nd, 2016 AT 7:02 PM

Telcos are in an acquisition mode this year. After the Verizon – Yahoo deal for $5 billion, here comes AT&T’s in principle agreement to buy Time Warner for a whopping $85 billion, Reuters reported quoting sources.

india

The deal, which has been agreed on most terms and could be announced as early as Sunday would be one of the largest in recent years in the sector as telecommunications companies look to combine content and distribution to capture customers replacing traditional pay-TV packages with more streamlined offerings and online delivery.

AT&T would gain control of cable TV channels HBO and CNN, film studio Warner Bros and other coveted media assets.

AT&T will pay $110 per Time Warner share in cash and stock or about $85 billion overall. AT&T has already made moves to turn itself into a media powerhouse, buying satellite TV provider DirecTV last year for $48.5 billion. Owning more content gives cable and telecom companies bargaining leverage with other content companies as customers demand smaller, hand-picked cable offerings or switch to watching online. And new mobile technology including next-generation 5G networks could make a content tie-up especially attractive for wireless providers.

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suraj
suraj

If we look this in india then Reliance got Telecom,Tv,Dth in their hands already

Aviator
Aviator

They do not have DTH. Big TV is owned by Reliance Communications, Anil’s company. RIL have TV only through app, let’s see if they start offering IPTV when they launch FTTH.

Marco
Marco

Mukes Ambani should take over AT&T.

Sanjit Roy, Thakurnagar, wb
Sanjit Roy, Thakurnagar, wb

That might happen but it would take another 15 years, if this current workaholic regime remains in india for at least 3 tenures, unless that both ril and Indian economy has no chance to compete the both US & Chinese economy as well as to their top ten companies by revenues

Rahul
Rahul

He does not have enough money. Please do some research before posting these stupid comments.

Ashish
Ashish

You are stupid. Mukesh ambani has personal wealth of $20 billion. And you think his company doesn’t have $80 billion? Are you serious?

Forget about that as well. Companies don’t pay full to buy these things banks give guarantee on their behalf, like what happened in auction. Even if they don’t have money they will take banks help.

Please do some research before saying something

Ashish
Ashish

Also he just invested approx $30 billion in Jio. And promised to invest $15 billion in next 3 years. Still think he don’t have money?

Rahul
Rahul

Hahahahahha, Bro your comment was more cringeworthy than the original one. Currently AT&T is valued at $240 Billion and RIL is worth $37.3 Billion. Total AT&T assets are worth & $400 Billion and RIL $90 Billion. You cannot even compare these two companies. Its like Flipkart trying to buy Amazon or Micromaxx trying to buy Apple. Bro you doesn’t even know how a individual’s net worth works. Hahahahaha

Ashish
Ashish

Oh really? I was talking about time warner dumbo not ATT

Rahul
Rahul

You are something else.

Rahul
Rahul

Correction: i typed $37 billion by mistake instead of $47 billion as company valuation.

Munnu
Munnu

Mukes can’t do that.
Market cap of AT&T —> 230 billion dollars
Market cap of Reliance —> 46 billion dollars.
Mukesh Ambani’s wealth = 20 billion dollars.
If we split AT&T in terms of Reliance and Mukesh Ambani.
We get AT&T = 5 Reliances = 11 and half Mukesh Ambanis.
Sadly, we have only one Mukesh Ambani.

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