Last Saturday AT&T's CEO Randall L. Stephenson announced that AT&T Inc. has reached an agreement to buy Time Warner Inc. for $85.4 billion, including the Time Warner Inc's debt and cash, the purchase is valued at $108.7 billion. AT&T has agreed to pay $107.50 a share, evenly split between cash and stock and when the deal finally closes, Time Warner shareholders will own 14.4 % -- 15.7% of AT&T shares.
This is a landmark in the history of AT&T, as with this announcement, they have transitioned from a communications company to a media conglomerate. This will result in the largest vertically integrated media company, with a combined market capital of over $300 billion (AT&T has a current market capital of $230.64 billion and Time Warner Inc. has a current market capital of $69.7 billion). With this acquisition, AT&T will be able to combine content from Time Warner, a vast library of TV and movie properties, including HBO, CNN, TBS, TNT, Cartoon Network, and the Warner Bros. film studio, home to the Harry Potter and DC Comics franchises entertainment, with AT&T's distribution network of mobile services, broadband and TV in the U.S., Mexico and Latin America.
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