AT&T announced it has reached an agreement to buy entertainment group Time Warner for USD 85.4 billion. The transaction is still of pending approval and is expected to close before year-end 2017.
AT&T said in a statement it will pay USD 107.50 per share. The total transaction value is USD 108.7 billion, including Time Warner’s net debt.
If approved by regulators, AT&T will have the control of each of Time Warner’s three divisions: Warner Bros studios, HBO premium channels (and streaming services HBO Now, HBO Go) and Turner, the owner of pay TV networks CNN, Cartoon Network and TNT, among others. This way, the telecommunications company will combine Time Warner’s vast library of content with its pay TV, mobile and broadband subscriber base.
In mid- 2015, AT & T completed the acquisition of DirecTV operations, including Latin America. In addition, the U.S giant is present in Mexico’s mobile market after acquiring Nextel Mexico and Iusacell, also in 2015.
“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.