Come Together: AT&T Makes A Bid For Time Warner
It's the latest in the newest internet trend.
The Short of It:
Over the weekend, Time Warner accepted an offer from AT&T that included being bought out for $84.5 billion dollars.
The Longer Version of It:
Here's how it affects you:
AT&T Inc.'s 85.4 billion dollar deal to buy Time Warner Inc. is expected to entirely reshape the media landscape -- if it happens. The largest media merge ever, would bring Daenerys Targaryen, Erin Burnett and your phone bill all together. For AT&T, the business deal would open up even greater opportunities especially because the world is now jam pact with smartphones. For Time Warner, the deal will put the company's content in front of more people-- especially in a decade where millennials are passing on cable plans.
When it's all happening:
Well first, hold your horses. Before the merger can happen, U.S. regulators will have to give the nod of approval. The deal, which will unite one of the world's most popular telecom companies to one of the most popular media outlets, is already grabbing the attention of eyes all over the political realm. Even Donald Trump and Bernie Sanders have opinions on the buy out, with Trump saying that if was elected he wouldn't approve the deal "because it's too much concentration of power in the hands of too few." Sanders in a similar note has rejected the agreement because it " would mean higher prices and fewer choices for the American people."
AT&T has already faced the rejection of a deal like this before. Back in 2011, it gave up a bid to buy T-Mobile when regulators put a thumbs down to the proposal. If AT&T can pass the test with regulators, this time, they'll join the ranks of Comcast who merged with NBCUniversal in 2011 and Verizon who snatched up AOL last year.
The internet has been altering the ways of media and mobile businesses for ages. Now companies are seeing the opportunities of pulling both sources together. AT&T/Time Warner are only the latest of companies to come together for better or worse.