AT&T  Acquiring Time Warner

October 25th, 2016 at 6:10 pm

acquisition newsOne of the biggest news that recently came out was the announcement of US telecom firm AT&T acquiring media company Time Warner for a whopping $85.4 billion in cash and stock. The result would be the creation of a telecom giant merging with a media giant to become an even bigger behemoth. In a business mindset, the acquisition makes sense. Time Warner provides a collection of valuable media properties that produce content such as movies, music, sports events and more. AT&T provides the means of distributing that content through its mobile platform, the internet, conventional TV and theatres.

With this acquisition, it will be easier for AT&T to provide a wide range of media content for its subscribers without the need to go through licensing deals. And with tons of content available, it will be easier to provide its customer base with a different number of product options through its current business, not to mention the opportunities available for the businesses that it is acquiring. In short, the company may have a sizable advantage over competitors in the telecom industry with this acquisition.

And just like with the different acquisitions and mergers of this scale in the past, it may likely get the attention of the regulatory bodies. First off, there would be concerns whether the merger will result to an unfair advantage over competitors that will lead to an eventual monopoly of the market. Even while both board of directors will want to move on with the merger, it is not a sure thing. And with an acquisition this big, there is bound to be some challenges ahead. Both companies are eyeing the deal to be consummated sometime in March of next year. But that still remains to be seen.


Tags: , ,