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LequteMan
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American multinational telecommunications conglomerate, AT&T is set to acquire Time Warner, America's famous cable telecoms firm for $85 billion in a mix of cash and shares.
The final acquisition price will be $107.50 per share, paid in half cash and half AT&T stock. This means every Time Warner stock investor will receive $53.75 in cash and $53.75 in AT&T stock for every outstanding share.
This price gives Time Warner a valuation of $85.4 billion – after the deal is finalized Time Warner shareholders will own between 14.4% and 15.7% of all outstanding AT&T shares. Time Warner will represent about 15% of the combined company’s revenues after the deal closes.
AT&T is expected to finance the cash portion of the deal - about $42.7bn with new debt as well as cash already on its balance sheet.
US Senator Al Franken issued a statement on the deal, pointing out that it may eventually end up being bad for consumers:
“AT&T’s reported proposal to acquire Time Warner for more than $80 billion raises some immediate flags about consolidation in the media market, which is an area I’ve worked to address for years,” he said.
“I’m skeptical of huge media mergers because they can lead to higher costs, fewer choices, and even worse service for consumers. And regulators often agree, like when Comcast unsuccessfully tried to buy Time Warner Cable, a deal that I fiercely opposed. In the coming days, I’m going to be pressing for further details about this reported deal and how it would affect the American consumer, who deserves access to the content they want and whose pocketbook continues to be squeezed by rising cable and internet costs.”
The final acquisition price will be $107.50 per share, paid in half cash and half AT&T stock. This means every Time Warner stock investor will receive $53.75 in cash and $53.75 in AT&T stock for every outstanding share.
This price gives Time Warner a valuation of $85.4 billion – after the deal is finalized Time Warner shareholders will own between 14.4% and 15.7% of all outstanding AT&T shares. Time Warner will represent about 15% of the combined company’s revenues after the deal closes.
AT&T is expected to finance the cash portion of the deal - about $42.7bn with new debt as well as cash already on its balance sheet.
US Senator Al Franken issued a statement on the deal, pointing out that it may eventually end up being bad for consumers:
“AT&T’s reported proposal to acquire Time Warner for more than $80 billion raises some immediate flags about consolidation in the media market, which is an area I’ve worked to address for years,” he said.
“I’m skeptical of huge media mergers because they can lead to higher costs, fewer choices, and even worse service for consumers. And regulators often agree, like when Comcast unsuccessfully tried to buy Time Warner Cable, a deal that I fiercely opposed. In the coming days, I’m going to be pressing for further details about this reported deal and how it would affect the American consumer, who deserves access to the content they want and whose pocketbook continues to be squeezed by rising cable and internet costs.”
