AT&T to buy Time Warner for $80B, deal announcement imminent - report [u: confirmed]

Posted:
in General Discussion edited October 2016
AT&T has reportedly agreed to buy Time Warner for $80 billion, in a deal which could potentially be announced later on Saturday.




The information comes via a source for the New York Times, who didn't elaborate further. The Times commented, though, that even if the two companies announce an agreement this weekend or later, it could still be scuttled by U.S. regulators, given the size of the two corporations and an increasingly hegemonic media landscape.

AT&T alone controls a large portion of country's communications infrastructure, operating phone, internet, and TV businesses under its own name, as well as subsidiaries like Cricket and DirecTV. Time Warner -- not to be confused with Time Warner Cable, now Spectrum -- owns TV networks like HBO, CNN, TBS, and the Cartoon Network, plus studios like Warner Bros., which not only makes its own movies and TV shows but owns DC Comics.

While the U.S. government has sometimes blocked such large-scale mergers, it has also allowed others to go through. Most notably this includes Comcast's 2011 takeover of NBCUniversal, which likewise created a giant entity owning large swaths of culture and the infrastructure it's presented on.

Apple -- once said to have raised the prospect of a Time Warner buyout in talks a few months ago -- has allegedly been monitoring AT&T's moves, presumably because of how it might impact iTunes content and so-far stalled streaming TV plans.

Update: AT&T on Saturday announced the acquisition of Time Warner in a stock-and-cash transaction valued at $107.50 per share. The price implies an equity value of $85.4 billion and a total transaction value of $108.7 billion, including Time Warner's net debt, the company said.
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Comments

  • Reply 1 of 53
    eriamjheriamjh Posts: 1,071member
    Ouch!  That is a lot of money.    But if you're going to violate net neutrality and offer streaming video for free (no data deductions), then you might as well own the media for it.
    tallest skil
  • Reply 2 of 53
    sockrolidsockrolid Posts: 2,788member
    ... an increasingly hegemonic media landscape.
    Old Hollywood saying:

    "Content is king.
    Distribution is King Kong."

    What we're seeing now is content + distribution = Godzilla.


    SpamSandwichbaconstang
  • Reply 3 of 53
    Won't this have to pass regulatory approval of some sort?
    Deelronbaconstang
  • Reply 4 of 53
    Won't this have to pass regulatory approval of some sort?
    As long as the correct political contributions have been made, that shouldn't be an issue. 
    calimacseekerRayz2016tallest skil
  • Reply 5 of 53
    FCC will never let this pass....Hope they aren't going to pay too much of a breakup fee. 
    vukasikaDeelron
  • Reply 6 of 53
    irelandireland Posts: 17,384member
    Apple should pull their finger out and buy Netflix ($55B). Regardless of the premium they'd get a return over time and it'd put Apple TV on the map. By 15 years time the amount of great new content on Netflix will be humongous!! And every production outfit on the planet want their show on Netflix. It's the place to be. Time to make some good use of 1/4 of that war chest. Give Apple TV users a discount for Netflix, lower ATV entry price to $99. Make up the difference and then some on the slice of the app-pie. Get everyone to want ATV with its discounted Netflix—own the living room.
    edited October 2016 kspt02
  • Reply 7 of 53
    They let Comcast take over NBC Universal. I doubt this will be stopped.
    baconstangtallest skilpscooter63
  • Reply 8 of 53
    irelandireland Posts: 17,384member
    They let Comcast take over NBC Universal. I doubt this will be stopped.
    Read the full piece next time.
    edited October 2016
  • Reply 9 of 53
    Nah this will face too much opposition to be passed besides, AT&T only has a cash reserve of $7billion and would need financing for the remaining cash portion of the deal. However, they are already carrying $120 Billion (yes Billion) in Debt. Also don't forget AT&T just acquired Direct TV in 2013 and already owns the U-Verse cable brand. I seriously doubt this makes it pass the antitrust regulations even if AT&T manages to come up with the financing it would need to close the deal.
    Deelron
  • Reply 10 of 53
    sirlance99sirlance99 Posts: 1,094member
    jsmythe00 said:
    ireland said:
    Apple should pull their finger out and buy Netflix ($55B). Regardless of the premium they'd get a return over time and it'd put Apple TV on the map. By 15 years time the amount of great new content on Netflix will be humongous!! And every production outfit on the planet want their show on Netflix. It's the place to be. Time to make some good use of 1/4 of that war chest. Give Apple TV users a discount for Netflix, lower ATV entry price to $99. Make up the difference and then some on the slice of the app-pie. Get everyone to want ATV with its discounted Netflix—own the living room.
    OR...spend 55 billion building out your own content to compete with netflix. Create your own bundles based on the content agreements you already have. Create new fantasy, murder, sci fi series on on Apple.  Lock in deals for starwars, Star Trek and FireFly and others. 


    They could do more with 55B than buy Netflix. BUT I like your line of thinking
    Apple can't lock in Star Wars as it's already locked with Turner Broadcasting for TBS and TNT. Plus Apple couldn't lock in anything exclusively to Apple for new release sales, outside maybe limited time, because those sales will tank. You have to be able to buy new release movies on any format to get the largest possible sales. 
  • Reply 11 of 53
    flaneurflaneur Posts: 4,465member
    jsmythe00 said:
    ireland said:
    Apple should pull their finger out and buy Netflix ($55B). Regardless of the premium they'd get a return over time and it'd put Apple TV on the map. By 15 years time the amount of great new content on Netflix will be humongous!! And every production outfit on the planet want their show on Netflix. It's the place to be. Time to make some good use of 1/4 of that war chest. Give Apple TV users a discount for Netflix, lower ATV entry price to $99. Make up the difference and then some on the slice of the app-pie. Get everyone to want ATV with its discounted Netflix—own the living room.
    OR...spend 55 billion building out your own content to compete with netflix. Create your own bundles based on the content agreements you already have. Create new fantasy, murder, sci fi series on on Apple.  Lock in deals for starwars, Star Trek and FireFly and others. 


    They could do more with 55B than buy Netflix. BUT I like your line of thinking
    Fantasy, murder and sci fi is so in Apple's DNA, right? Why stop there? How about rape, sodomy and pederasty, just to make things a little more exciting? 

    I can't believe how Hollywood has destroyed people's brains ...
    tallest skilbrucemcpscooter63
  • Reply 12 of 53
    flaneur said:
    jsmythe00 said:
    ireland said:
    Apple should pull their finger out and buy Netflix ($55B). Regardless of the premium they'd get a return over time and it'd put Apple TV on the map. By 15 years time the amount of great new content on Netflix will be humongous!! And every production outfit on the planet want their show on Netflix. It's the place to be. Time to make some good use of 1/4 of that war chest. Give Apple TV users a discount for Netflix, lower ATV entry price to $99. Make up the difference and then some on the slice of the app-pie. Get everyone to want ATV with its discounted Netflix—own the living room.
    OR...spend 55 billion building out your own content to compete with netflix. Create your own bundles based on the content agreements you already have. Create new fantasy, murder, sci fi series on on Apple.  Lock in deals for starwars, Star Trek and FireFly and others. 


    They could do more with 55B than buy Netflix. BUT I like your line of thinking
    Fantasy, murder and sci fi is so in Apple's DNA, right? Why stop there? How about rape, sodomy and pederasty, just to make things a little more exciting? 

    I can't believe how Hollywood has destroyed people's brains ...
    Where in the world have you been for the last year and a half that such a suggestion made now apparently offends you?

    Listen to As Nasty As They Wanna Be by The 2 Live Crew on @AppleMusic.
    edited October 2016
  • Reply 13 of 53
    flaneurflaneur Posts: 4,465member
    duervo said:
    flaneur said:
    jsmythe00 said:
    ireland said:
    Apple should pull their finger out and buy Netflix ($55B). Regardless of the premium they'd get a return over time and it'd put Apple TV on the map. By 15 years time the amount of great new content on Netflix will be humongous!! And every production outfit on the planet want their show on Netflix. It's the place to be. Time to make some good use of 1/4 of that war chest. Give Apple TV users a discount for Netflix, lower ATV entry price to $99. Make up the difference and then some on the slice of the app-pie. Get everyone to want ATV with its discounted Netflix—own the living room.
    OR...spend 55 billion building out your own content to compete with netflix. Create your own bundles based on the content agreements you already have. Create new fantasy, murder, sci fi series on on Apple.  Lock in deals for starwars, Star Trek and FireFly and others. 


    They could do more with 55B than buy Netflix. BUT I like your line of thinking
    Fantasy, murder and sci fi is so in Apple's DNA, right? Why stop there? How about rape, sodomy and pederasty, just to make things a little more exciting? 

    I can't believe how Hollywood has destroyed people's brains ...
    Where in the world have you been for the last year and a half that such a suggestion made now apparently offends you?

    Listen to As Nasty As They Wanna Be by The 2 Live Crew on @AppleMusic.
    I ain't been watching TV, that's for sure. And he left out war. Apple is really into war.
    edited October 2016
  • Reply 14 of 53
    flaneur said:
    duervo said:
    flaneur said:
    jsmythe00 said:
    ireland said:
    Apple should pull their finger out and buy Netflix ($55B). Regardless of the premium they'd get a return over time and it'd put Apple TV on the map. By 15 years time the amount of great new content on Netflix will be humongous!! And every production outfit on the planet want their show on Netflix. It's the place to be. Time to make some good use of 1/4 of that war chest. Give Apple TV users a discount for Netflix, lower ATV entry price to $99. Make up the difference and then some on the slice of the app-pie. Get everyone to want ATV with its discounted Netflix—own the living room.
    OR...spend 55 billion building out your own content to compete with netflix. Create your own bundles based on the content agreements you already have. Create new fantasy, murder, sci fi series on on Apple.  Lock in deals for starwars, Star Trek and FireFly and others. 


    They could do more with 55B than buy Netflix. BUT I like your line of thinking
    Fantasy, murder and sci fi is so in Apple's DNA, right? Why stop there? How about rape, sodomy and pederasty, just to make things a little more exciting? 

    I can't believe how Hollywood has destroyed people's brains ...
    Where in the world have you been for the last year and a half that such a suggestion made now apparently offends you?

    Listen to As Nasty As They Wanna Be by The 2 Live Crew on @AppleMusic.
    I ain't been watching TV, that's for sure. And he left out war. Apple is really into war.
    Left out war? War has been news for decades, and arguably centuries. Shakespeare for that matter wrote about a lot of those topics mentioned. We should burn all of his works too, while we're at it, I suppose.
    edited October 2016
  • Reply 15 of 53
    flaneurflaneur Posts: 4,465member
    duervo said:
    flaneur said:
    duervo said:
    flaneur said:
    jsmythe00 said:
    ireland said:
    Apple should pull their finger out and buy Netflix ($55B). Regardless of the premium they'd get a return over time and it'd put Apple TV on the map. By 15 years time the amount of great new content on Netflix will be humongous!! And every production outfit on the planet want their show on Netflix. It's the place to be. Time to make some good use of 1/4 of that war chest. Give Apple TV users a discount for Netflix, lower ATV entry price to $99. Make up the difference and then some on the slice of the app-pie. Get everyone to want ATV with its discounted Netflix—own the living room.
    OR...spend 55 billion building out your own content to compete with netflix. Create your own bundles based on the content agreements you already have. Create new fantasy, murder, sci fi series on on Apple.  Lock in deals for starwars, Star Trek and FireFly and others. 


    They could do more with 55B than buy Netflix. BUT I like your line of thinking
    Fantasy, murder and sci fi is so in Apple's DNA, right? Why stop there? How about rape, sodomy and pederasty, just to make things a little more exciting? 

    I can't believe how Hollywood has destroyed people's brains ...
    Where in the world have you been for the last year and a half that such a suggestion made now apparently offends you?

    Listen to As Nasty As They Wanna Be by The 2 Live Crew on @AppleMusic.
    I ain't been watching TV, that's for sure. And he left out war. Apple is really into war.
    Left out war from 2 Live Crew? You must have me confused with somebody else.
    Fixed it above, sorry. Nice user name, by the way. Seriously
  • Reply 16 of 53
    ireland said:
    Apple should pull their finger out and buy Netflix ($55B). Regardless of the premium they'd get a return over time and it'd put Apple TV on the map. By 15 years time the amount of great new content on Netflix will be humongous!! And every production outfit on the planet want their show on Netflix. It's the place to be. Time to make some good use of 1/4 of that war chest. Give Apple TV users a discount for Netflix, lower ATV entry price to $99. Make up the difference and then some on the slice of the app-pie. Get everyone to want ATV with its discounted Netflix—own the living room.
    Apple doesn't really need to buy anything. Certainly not some content play for $55B plus premium (the latter of which you conveniently forgot). It is doing fabulously as a hardware company -- which is how it became the profitable and financial behemoth that it has become -- and continues to execute that strategy well. It appears to have a clear future strategy of enhancing services. 

    Netflix is a ridiculously overvalued company with and handful of very good TV shows and a whole bunch of has-been legacy content. 
    brucemcpscooter63
  • Reply 17 of 53
    mac_128mac_128 Posts: 3,129member
    vukasika said:
    Nah this will face too much opposition to be passed besides, AT&T only has a cash reserve of $7billion and would need financing for the remaining cash portion of the deal. However, they are already carrying $120 Billion (yes Billion) in Debt. Also don't forget AT&T just acquired Direct TV in 2013 and already owns the U-Verse cable brand. I seriously doubt this makes it pass the antitrust regulations even if AT&T manages to come up with the financing it would need to close the deal.
    What exactly do you think the antitrust regulators will have a problem with?
    anantksundaram
  • Reply 18 of 53
    vukasika said:
    Nah this will face too much opposition to be passed besides, AT&T only has a cash reserve of $7billion and would need financing for the remaining cash portion of the deal. However, they are already carrying $120 Billion (yes Billion) in Debt. Also don't forget AT&T just acquired Direct TV in 2013 and already owns the U-Verse cable brand. I seriously doubt this makes it pass the antitrust regulations even if AT&T manages to come up with the financing it would need to close the deal.
    I believe Time Warner sold their cable business to Charter. It is now called Spectrum. They just license the Time Warner Name and the Eye logo, but that is already being phased out now with the new Spectrum branding. Now that they don't have distribution, I'm not so sure this will be blocked.
    anantksundaram
  • Reply 19 of 53
    vukasika said:
    Nah this will face too much opposition to be passed besides, AT&T only has a cash reserve of $7billion and would need financing for the remaining cash portion of the deal. However, they are already carrying $120 Billion (yes Billion) in Debt. Also don't forget AT&T just acquired Direct TV in 2013 and already owns the U-Verse cable brand. I seriously doubt this makes it pass the antitrust regulations even if AT&T manages to come up with the financing it would need to close the deal.
    You sound like you're just making up stuff. The $85B is being paid for with 50% stock, 50% cash. The amount they will borrow is $40B (and they already have commitments from J P Morgan and Bank of America for that).
    gatorguy
  • Reply 20 of 53
    ireland said:
    They let Comcast take over NBC Universal. I doubt this will be stopped.
    Read the full piece next time.
    Huh? Regulators didn't stop Comcast & NBC. I doubt they'll stop this. I can see why companies like Comcast and AT&T want to be more than just dumb pipes.
    edited October 2016
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