Update: AT&T has officially announced its acquisition of Time Warner with a final price of $107.50 per share or $85.4 billion.
In acknowledging the consolidation of the content and distribution industries, AT&T CEO Randall Stephenson said that the two companies coming together would provide unmatched customer choice.
“The future of video is mobile and the future of mobile is video,” Stephenson said.
Time Warner CEO Jeff Bewkes is hoping to attach over 100 million AT&T subscribers across its wireless and wireline services to its revenue tranche in the hopes of providing more and better content to consumers.
AT&T will also carry $23.3 billion of Time Warner’s debt and $40 billion of debt secured for the deal, which it expects to close late next year. AT&T will engage a conference call on third quarter earnings and the transaction on Monday.
Our original story is below.
The acquisition arms race has hit between the media and telecommunications industries. AT&T is about to catch up to Verizon with an offer for Time Warner that values the company between $105 and $110 per share. The Wall Street Journal reports from its sources that the boards of the two companies may finalize and announce the deal by this evening.
The deal, with an estimated value of $80 billion, would overshadow Comcast becoming majority shareholder of NBCUniveral ($30 billion).
AT&T will be able to enrich its product offerings with not only satellite TV, cellular and a multitude of wireline services, but content offerings from HBO, CNN and Warner Bros. among a bevy of other Time Warner brands.
Speaking of the NBCUniversal deal, any regulatory decision on the deal would have to have strings attached. Some FCC board members have been wondering if some of the conditions the commission put in place for the 2011 deal were stringent enough or could even be monitored.
Ma Bell would also have to find a way to finance the deal with its reported $120 billion in debt and $7 billion in capital at the moment.