Yesterday we reported that AT&T was looking to snag Time Warner and they wanted to get the deal done quickly. The company wanted to avoid any sort of bidding war with other potential suitors like Apple and Alphabet Inc. (Google). Well, it looks like their wish has come true as they’ve announced an $85.4USD billion dollar deal to buy Time Warner. This purchase includes not only Time Warner cable, which will bolster AT&T’s DirecTV business, but it also includes heavyweight brands such as HBO, CNN and Warner Bros. film and TV studios. The latter entities bring AT&T into the entertainment content production realm, a place they’ve not been yet.
“When Jeff and I started talking, it became clear to us very quickly that we shared a very similar vision,” Randall L. Stephenson, AT&T’s chief executive, told reporters on a conference call on Saturday, referring to Jeffrey Bewkes, Time Warner’s chief executive. “Time Warner, we believe, is the clear leader in premium content.”
With Comcast taking over NBCUniversal and now AT&T offering to take over Time Warner, this could be a sign outfits like Netflix and Amazon Prime are making a dent in their bottom line. Content delivery is becoming very competitive now that more people are streaming than ever before. Not only that but the quality of original programs coming from Netflix and Amazon is increasing and people are excited about this new content consumption method. Being able to binge watch a show without commercials or interruption has lured people into streaming their content instead of relying on cable and satellite.
It will be interesting to see where AT&T takes Time Warner and how this all plays out. What do you think of AT&T dropping this much cash for Time Warner? Let us know your thoughts and comments below or on Twitter, Facebook and Google+.[button link=”http://www.nytimes.com/2016/10/23/business/dealbook/att-agrees-to-buy-time-warner-for-more-than-80-billion.html?_r=0″ icon=”fa-external-link” side=”left” target=”blank” color=”285b5e” textcolor=”ffffff”]NY Times[/button]
Last Updated on January 23, 2017.