AT&T closes $85.4bn Time Warner deal
The world’s largest telecommunications company, AT&T Inc., has completed its acquisition of Time Warner.
Under the deal - which is worth $85.4bn and a total of $108bn with debt - AT&T will take control of Time Warner, owner of media brands such as HBO, Warner Bros. and CNN.
“The content and creative talent at Warner Bros., HBO and Turner are first-rate. Combine all that with AT&T’s strengths in direct-to-consumer distribution, and we offer customers a differentiated, high-quality, mobile-first entertainment experience,” said Randall Stephenson, chairman and CEO of AT&T.
“We’re going to bring a fresh approach to how the media and entertainment industry works for consumers, content creators, distributors and advertisers.”
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Through the momentous deal, AT&T says it expects to save $2.5bn in “synergies" and return to significant revenue growth over the next four years.
Last year alone, Time Warner is said to have generated around $31bn.
A federal judge ruled that the acquisition was legal and imposed no conditions on the merger.
Announced in October 2016, the takeover is the latest effort by a big telecom company to acquire media assets.
This week American telecom firm Comcast launched a $65bn bid for Fox, a higher sum that Disney’s previous $52.4bn bid.