14 Billion-Dollar Acquisitions Before AT&T-Time Warner (Photos)
From Disney-ABC to Wanda and Legendary, a look back major media deals with staggering price tags before the AT&T Time Warner acquisition.
AT&T Inc. has agreed to buy Time Warner Inc. in a cash-and-stock deal worth $85 billion, transferring ownership of one of Hollywood’s most treasured studios and transforming the 136-year-old telephone company into a massive multimedia giant.
The deal creates a distribution and content colossus of the digital age, bringing together premium assets including satellite TV provider DirecTV, cell phone network AT&T Wireless, the Warner Bros. movie and television studios and HBO and Turner cable channels under one, massive corporate roof.
AT&T will pay $107.50 per share of Time Warner, which values the transaction at $85.4 billion, according to a statement released by the companies on Saturday.
“This is a perfect match of two companies with complementary strengths who can bring a fresh approach to how the media and communications industry works for customers, content creators, distributors and advertisers,” said Randall Stephenson, AT&T chairman and CEO. “Premium content always wins.”
He added: “With great content, you can build truly differentiated video services, whether it’s traditional TV, OTT or mobile.”
Time Warner Chairman and CEO Jeff Bewkes said, “This is a great day for Time Warner and its shareholders. Combining with AT&T dramatically accelerates our ability to deliver our great brands and premium content to consumers on a multiplatform basis and to capitalize on the tremendous opportunities created by the growing demand for video content.”
The deal is the largest media merger since AOL’s $165 billion purchase of Time Warner in 2000 — which did not work out so well. AOL took a $99 billion loss in 2003 as its internet business collapsed, and Verizon bought that company for $4.4 billion last year. Time Warner hopes its second time as part of a mega-merger has a better result.
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