AT&T To Buy Time Warner For $US85.4 Billion

AT&T To Buy Time Warner For $US85.4 Billion
SHARE
THIS



AT&T is all set to acquire Time Warner for $US85.4 billion in a deal that will lead the next wave innovation for the combined entity, as the phone company transforms into a media giant.

The deal is expected to close before year-end 2017, with AT&T chief executive Randall Stephenson to head the new business (subject to review by the US Justice Department and approval from Time Warner shareholders.

The companies believe the synergies that will result from the transaction will disrupt the traditional entertainment model and push the boundaries on mobile content availability for the benefit of customers.

The new company hopes to become the first US mobile provider to compete nationwide with cable companies in the provision of bundled mobile, broadband and video.

In the statement released on the merger, the companies said the deal combines Time Warner’s vast content library and ability to create new content that connects with global audiences with AT&T’s extensive customer relationships, world’s largest pay TV subscriber base and leading scale in TV, mobile and broadband distribution.

AT&T said the new company is positioned to create new customer choices — from content creation and distribution to a mobile-first experience that is personal and social.

The merger is set to deliver more innovation with new forms of original content built for mobile and social, which builds on Time Warner’s HBO Now and the upcoming launch of AT&T’s OTT offering DIRECTV NOW, according to the statement.

By owning content, AT&T believes it will also be able to innovate on new advertising options. It will create a two-sided business model – advertising and subscription-based – that will help pay for the cost of content creation and provide customers with the largest amount of premium content at best value.

“It’s an integrated approach, and we believe it’s the model that wins over time,” Stephenson said.

“With great content, you can build truly differentiated video services, whether it’s traditional TV, OTT or mobile.

“Our TV, mobile and broadband distribution and direct customer relationships provide unique insights from which we can offer addressable advertising and better tailor content.”

Stephenson said the combined company would solve a big customer pain point by giving them enhanced access to premium content on all their devices and providing a new stronger competitive alternative to cable TV companies.

The AT&T-Time Warner deal is the latest media and telecom merger, and comes after mobile carrier Vodafone merged with Sky TV NZ in June this year, Verizon’s acquisition of AOL in 2015, and Comcast’s merger with NBC in 2011.

It follows the now familiar pattern of the big telecom-internet providers acquiring content rather than just delivering it, in an attempt to reclaim market share as customers cut the cable TV cord in favour for streaming services like Netflix, Stan, Hulu, and YouTube.

The strategic deterioration for cable TV operators globally is based on declining subscriber numbers, downward pressure on existing subscriber pricing, and the increasing competition for content driving content prices up.

This merger is yet another signal that cable TV’s competitive position has been eroded by the increased consumer uptake for OTT video-on-demand services delivered via high-speed broadband internet.

Please login with linkedin to comment

Advertising Standards Bureau AT&T Time Warner

Latest News

Coopers Release New & Limited Edition Hazy IPA Via TABOO
  • Campaigns

Coopers Release New & Limited Edition Hazy IPA Via TABOO

Looking to entice a more progressive audience into the Coopers family, Australia’s largest independent brewery has released a limited edition Hazy IPA. The product has launched via a national OOH and digital campaign in collaboration with Melbourne creative agency, TABOO. TABOO is behind the exciting new illustrative can design, inspired by the Australian landscape. The […]

Ben & Jerry Goes Political In ‘Unfudge Our Future’ Campaign
  • Campaigns

Ben & Jerry Goes Political In ‘Unfudge Our Future’ Campaign

Ben & Jerry’s has unveiled their latest limited-edition flavour: Unfudge our Future, to urge Australia’s leaders to tackle climate change by making fossil fuels history. The launch aligns with the Federal Government’s preparation of a history-making economic reboot in the upcoming October Budget, with Ben & Jerry’s joining forces with 350.org Australia and the Climate […]

Celeste Barber Encourages Aussies To ‘Get Your Jugs Out’ In Hilarious BRITA Campaign
  • Campaigns

Celeste Barber Encourages Aussies To ‘Get Your Jugs Out’ In Hilarious BRITA Campaign

BRITA Australia is today proud to reveal its latest national campaign, ‘Get Your Jugs Out’, starring Australian comedian, Celeste Barber. The quirky campaign encourages Australians to make the switch from bottled water to great tasting filtered tap water, using a BRITA filter jug at home, with the creative brought to life with Celeste’s cheeky, yet relatable sense of humour.

Enero Posts Net Revenue Increase Of 4.9%
  • Media

Enero Posts Net Revenue Increase Of 4.9%

Forget 2020's plagues, pestilence and famine says Enero, as balance sheet comes out with sweet smell of potpourri.

by B&T Magazine

B&T Magazine
You Can Now Limit Who Can Reply To You On Twitter
  • Technology

You Can Now Limit Who Can Reply To You On Twitter

Twitter is saying ‘bye to the reply guys’, allowing users to control who can reply to their Tweets. ‘Reply guys’ have long been an issue on the social media app, where users (often anonymous) frequently comment on posts in an annoying, condescending or otherwise unsolicited manner. Twitter first put these users on notice in May […]

Home Office Set Up for Webinar and Teleconference whilst respecting the lockdown due to the corona virus outbreak
  • Media

The Virtual Conference Network Launches In Australia

The Virtual Conference Network, an Australian-founded disruptive alternative to video conferencing, has today launched to provide risk mitigation, improved flexibility, new post-event revenue streams, and optimal cost-effectiveness to conference organisers, business leaders and peak bodies. With over 20 years of first-hand experience with the high-risk and costly ways of delivering traditional conferences, co-founders Alex Paine […]

Medallia Appoints Heather Paterson As ANZ Country Manager
  • Advertising

Medallia Appoints Heather Paterson As ANZ Country Manager

Medallia has appointed Heather Paterson as its new ANZ country manager to drive further growth across Australia and New Zealand. With a strong sales performance and leadership background, Paterson joins Medallia as ANZ country manager following more than seven years with leading SaaS financial technology provider, Intralinks, where she was most recently director for Asia […]

IAS And Channel Factory ‘Channel Science’
  • Technology

IAS And Channel Factory ‘Channel Science’

Integral Ad Science (IAS) today announced the launch of “Channel Science”, an industry-leading partnership between Channel Factory and IAS. The Channel Science solution helps advertisers to leverage both companies’ technologies through a single product to ensure their YouTube campaigns are brand-safe, brand-suitable, and performance-optimized.  More than ever before, advertisers are searching for ways to streamline their media buying and improve […]

by B&T Magazine

B&T Magazine
Playing
  • Technology

Google Presses Play On Programmatic Audio

If CV-19's given us anything, it's more podcasts than you could listen to in 1000 lifetimes. Monetise yours with this.

by B&T Magazine

B&T Magazine