AT&T-Time Warner merger completed

15 Jun 2018

AT&T Inc yesterday announced the completion of its acquisition of Time Warner Inc, two days after the USD85 billion deal was approved by a federal judge. The merger brings together global media and entertainment groups Warner Bros, HBO and Turner with AT&T’s telecoms and TV empire. AT&T’s announcement said that the move will ‘bring a fresh approach to how the media and entertainment industry works for consumers, content creators, distributors and advertisers’. AT&T will begin consolidating Time Warner results effective 15 June 2018.

Under the terms of the merger, Time Warner shareholders received 1.4 shares of AT&T common stock, in addition to USD53.75 in cash per share of Time Warner. As a result, AT&T issued 1.185 billion shares of common stock and paid USD42.5 billion in cash. Including net debt from Time Warner, AT&T now has USD180.4 billion in total net debt.

The AT&T group consists of four main businesses:

- AT&T Communications provides mobile, broadband, video and other communications services in the US (with revenues of more than USD150 billion in 2017)

- AT&T’s media business consists of HBO, Turner and Warner Bros, which collectively earned over USD31 billion revenue in 2017 (a new name for this business will be announced later)

- AT&T International provides mobile services in Mexico, plus pay-TV across eleven countries in South America and the Caribbean (USD8 billion-plus revenues in 2017)

- AT&T’s advertising and analytics business combining existing AT&T assets with those of Turner (a name for this company will be announced in the future).

United States, AT&T, Time Warner Inc