AT&T purchased the media giant Time Warner Saturday evening for $107.50 per share or $85.4 billion.
Chief Executive of AT&T Randall Stephenson is slated to head the new mega media firm. Time Warner Chief Executive Jeff Bewkes will stay on for a short period while the new company gets its footing, but will exit when the transition is complete, according to the New York Post.
Experts are noting the high price tag of this deal, saying it shows Time Warner was undervalued in the public markets, the NYPost reports, and is also a huge gain for AT&T. Time Warner boasts an enviable media lineup that includes: CNN, TNT, and HBO.
The new company wants to be the first U.S. wireless company to compete on the national level with an online video package similar to the traditional television pay-package, according to the Wall Street Journal.
Arguably the most interesting aspect of the merger is the new conflict of interest that competitors’ face with AT&T, as its acquisition of Time Warner means that companies like Comcast have to deal with AT&T to purchase content. If federal regulators give this deal the stamp of approval, it could cause other media companies to sweat a little.
Stephenson says that AT&T is not buying a competitor, but rather it is gaining a supplier. He also does not think that federal regulators will shoot down the deal, as this the combination of the two companies is nothing illegal, the Wall Street Journal reports.
The merger is expected to be complete by the end of 2017.
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