AT&T to acquire Time Warner. Could it create the biggest media giant?

Time Warner — which owns TV channels such as CNN and HBO and includes Warner Bros. film studio — is being sold to AT&T for the equivalent of 340 billion (!) zloty in Polish currency.

AT&T representatives announced the deal will be paid partly in cash and partly in stock. Last Friday, Time Warner's stock closed at nearly USD 90 per share.

AT&T, which has over 180 million subscribers, will offer everything a modern consumer needs through this acquisition. In addition to access to encrypted channels and mobile phone services, customers will gain satellite TV broadcast. The company will also be able to produce its own TV hits. The catalog will include major audience favorites such as "True Blood" or "Game of Thrones".

Trump opposes the merger

Interestingly, Donald Trump has voiced his opinion on the merger. He believes such a deal would never have been approved during his presidency, as he claims he would have blocked it due to concerns over media market monopolization in the U.S.

Decision rests with regulators

AT&T-Time Warner merger in regulatory hands

The transaction is expected to be finalized next year. Everything depends on regulators, who will decide whether the deal poses a threat to competition. Uncertainty is heightened by AT&T’s previous attempt to acquire T-Mobile, which was blocked by the U.S. Department of Justice.

"I'm optimistic. This agreement does not remove a competitor from the market. It’s a fresh approach to how the media and telecommunications industries can serve consumers, content creators, distributors, and advertisers." — comments AT&T CEO Randall Stephenson on the merger.

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Summary

The acquisition of Time Warner by AT&T for 340 billion zloty equivalent would create a media-telecom giant with over 180 million subscribers. The company would gain access to producing its own hits such as "True Blood" or "Game of Thrones".

However, the deal raises regulatory concerns — the U.S. Department of Justice previously blocked AT&T’s attempt to acquire T-Mobile. Donald Trump claims he would have blocked this merger due to media market monopolization.