AT&T Inc. has agreed to purchase Time Warner Inc. in a cash-and-stock deal worth around $85 billion ($107.50 per share of Time Warner), according to a statement released by the companies on Saturday (October 22).
This means that DirecTV, AT&T Wireless, the Warner Bros. movie and TV studios, and more will all operate under one roof.
The deal is reportedly the biggest media merger since AOL bought Time Warner for $165 billion back in 2000.
“This is a perfect match of two companies with complementary strengths who can bring a fresh approach to how the media and communications industry works for customers, content creators, distributors and advertisers,” AT&T chairman and CEO Randall Stephenson said in the statement. “Premium content always wins. It has been true on the big screen, the TV screen and now it’s proving true on the mobile screen. We’ll have the world’s best premium content with the networks to deliver it to every screen.”
“This is a great day for Time Warner and its shareholders,” Time Warner chairman and CEO Jeffrey Bewkes added. “Joining forces with AT&T will allow us to innovate even more quickly and create more value for consumers. This is a natural fit between two companies with great legacies of innovation that have shaped the modern media and communications landscape.”