AT&T acquires Time Warner

Posted: 20th June 2018 10:20

AT&T Inc. has completed its acquisition of Time Warner Inc., bringing together global media and entertainment leaders Warner Bros., HBO and Turner with AT&T´s leadership in technology and its video, mobile and broadband customer relationships, the company said.

AT&T Inc. consists of four businesses. This structure allows each business to operate independently and move quickly, while at the same time innovating across AT&T with content, connectivity and advertising.

The four business are:

AT&T Communications provides mobile, broadband, video and other communications services to US-based consumers and nearly 3.5 million companies — from the smallest business to nearly all the Fortune 1000 — with highly secure, smart solutions. Revenues from these services totaled more than USD 150 billion in 2017.

AT&T´s media business consists of HBO, Turner and Warner Bros. Together, these businesses had revenues of more than USD 31 billion in 2017. A new name for this business will be announced later.

AT&T International provides mobile services in Mexico to consumers and businesses, plus pay-TV service across 11 countries in South America and the Caribbean. It had revenues of more than USD 8 billion in 2017.

AT&T´s advertising and analytics business provides marketers with advanced advertising solutions using valuable customer insights from AT&T´s TV, mobile and broadband services, combined with extensive ad inventory from Turner and AT&T´s pay-TV services. A name for this company will be announced in the future.

Under the terms of the merger, Time Warner Inc. shareholders received 1.4 shares of AT&T common stock, in addition to USD 53.75 in cash, per share of Time Warner Inc. As a result, AT&T issued 1,185M shares of common stock and paid USD 42.5B in cash. Including net debt from Time Warner, we now have USD 180.4B in net debt.


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