AT&T To Buy Time Warner (Incl. WB, TNT, HBO, CNN) For US$80 Billion

As internet customers vie for cheaper online alternatives, internet service providers are courting media companies to own some of the content delivered on their network…in a bid to remain competitive.

A merger would come at a pivotal time in the communications industry, where the giants are scrambling to create entertainment empires to maintain competitiveness as consumers increasingly embrace cheaper, digital alternatives. NYT

Donald Trump has mentioned his opposition to the deal.

Like other huge media consolidations, this merger has significant implications for the internet and the entertainment industry. As ISPs have expanded their holdings, they have found themselves competing directly with major content creators like Netflix. The Verge

The Deal Includes…

The deal includes ownership of Warner Brothers, HBO and CNN. They also acquired DirecTV last year for US$48.5 billion. According to the WSJ

Time Warner is viewed as perhaps the most attractive stand-alone media asset, given its premium content brands—which include HBO, CNN and Warner Bros.–and the fact it doesn’t have a controlling shareholder. The company had $28 billion in revenue last year and had a market capitalization of $68 billion before the Journal reported on the deal.

Also of note, The pairing brings together AT&T’s millions of wireless and pay-television subscribers with Time Warner’s deep media lineup including networks such as CNN, TNT, the prized HBO channel and Warner Bros. film and TV studio.

Other similar mergers include the Comcast / NBC Universal deal, which completed in 2011, and Verizon’s purchase of AOL and Yahoo over the past year.

The Wall Street Journal reported that Apple had approached Time Warner for a deal.

The talks for Time Warner suggest there is a greater merger dance occurring in the media industry as conglomerates, telecom companies and tech giants try to stake their claim on the future.