DALLAS and NEW YORK CITY, Oct. 22, 2016 — AT&T Inc. (NYSE:T) and Time Warner Inc. (NYSE:TWX) today announced they have entered into a definitive agreement under which AT&T will acquire Time Warner in a stock-and-cash transaction valued at $107.50 per share. The agreement has been approved unanimously by the boards of directors of both companies.
The Merger: A Strategic Move
The deal merges Time Warner’s extensive content library and creative capabilities with AT&T’s widespread customer base and dominance in pay TV, mobile, and broadband distribution. According to Randall Stephenson, AT&T’s chairman and CEO, this union represents a significant opportunity to reshape the media and communications landscape in favor of consumers, content creators, distributors, and advertisers.
Unlocking Potential
Stephenson emphasized the value of premium content and the importance of delivering it seamlessly across multiple platforms. The aim is to address customer frustrations about accessing content across various devices. By leveraging AT&T’s distribution channels and customer insights, the company intends to offer unparalleled choice, quality, and value to consumers.
Creating Synergy with Time Warner
Jeff Bewkes, Chairman and CEO of Time Warner, expressed optimism about the merger, citing the opportunity to accelerate content delivery and capitalize on the growing demand for video content. The collaboration aims to foster innovation, enhance consumer experiences, and drive value for shareholders.
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