Mike Snider USA TODAY Published 4:01 p.m. UTC Jun 18, 2018 AT&T's green light to seal its $85.4 billion deal for Time Warner is expected to kick off a new wave of video-streaming services seeking to battle Netflix. Consumers won't have to wait long to see results from the No. 2 wireless company and owner of DirecTV adding Turner, HBO and Warner Bros. studio to its stable. Next week, AT&T will launch Watch TV, an ad-supported video service that's free for its unlimited wireless subscribers and $15 for other consumers. The entertainment-centric service will have Turner channels and no sports, AT&T CEO Randall Stephenson says. "Those are the kind of things we are going to be bringing to market," he said on CNBC on Friday. AT&T needed the deal, Stephenson has said, to evolve into a modern media company that could compete with companies such as Netflix, Amazon, Facebook and Google. Other traditional media players will be making their own moves to … [Read more...] about Expect these Netflix rivals thanks to the AT&T-Time Warner merger
Aol time warner merger
By Joe Flint, Joe Flint The Wall Street Journal BiographyJoe Flint @JBFlint [email protected] Drew FitzGerald and Drew FitzGerald The Wall Street Journal BiographyDrew FitzGerald @drewfitzgerald Google+ [email protected] Alexandra Bruell Alexandra Bruell The Wall Street Journal BiographyAlexandra Bruell [email protected] June 13, 2018 6:05 p.m. ET 95 COMMENTS Last month, comedian Samantha Bee used a vulgarity to describe Ivanka Trump on her TBS show. It was bleeped on air, but ran online, and set off a scramble inside Time Warner Inc., the network’s parent company. Advertisers pulled out. Ms. Bee apologized. Time Warner Chief Executive Jeff Bewkes was furious. The comedian’s defenders argued that stars on sister channel HBO get to cross lines all the time, people familiar with the matter said. In the end, Ms. Bee wasn’t suspended. Congratulations, AT&T Inc., T -2.90% now all this is yours. The telecom giant this week … [Read more...] about AT&T’s Time Warner Prize—A Load of Hollywood Headaches
Last Updated Jun 13, 2018 3:16 PM EDT The last time $100 billion was spent buying Time Warner was back in 2000, when the media giant joined forces with the dotcom-era darling AOL in a stock-based merger that proved so disastrous it's widely seen as the worst corporate marriage in history.It turned out that after the dotcom crash, an overly inflated AOL was forced to take a monstrous goodwill write-off of nearly $99 billion on Time Warner in 2002. AOL's market value slumped from $226 billion to around $20 billion. A few years later Time Warner spun off its Time Warner Cable division and then AOL as independent companies. The vastly shrunken AOL was acquired by Verizon in 2015 for just $4.4 billion.Looking back, the AOL-Time Warner deal was marred by cultural incompatibilities and AOL's inability to respond to the rise of broadband vs. dial-up internet access. AOL lost its competitive position and couldn't extract the expected financial synergies from the deal. Fast forward … [Read more...] about AT&T-Time Warner deal raises specter of AOL Time Warner deal
By Gunjan Banerji Gunjan Banerji The Wall Street Journal BiographyGunjan Banerji @gunjanjs [email protected] June 13, 2018 5:30 a.m. ET 1 COMMENTS AT&T ’s T -5.82% victory in its legal battle to buy Time Warner Inc. TWX 2.12% likely handed a win to merger arbitragers, particularly some of Wall Street’s biggest hedge funds, who had bet the deal would go through. The deal has attracted interest from big firms. Hedge funds such as Highfields Capital, Baupost Group, Sachem Head Capital Management, Paulson & Co., Fir Tree, Oz Management, and Pentwater Capital Management all reported holding Time Warner shares in recent regulatory filings. Shortly after 4 p.m. on Tuesday, U.S. District Judge Richard Leon approved the roughly $80 billion merger. The decision sent shares of Time Warner rallying, a boon for merger arbitragers, who buy shares of the takeover target on the bet they will rise to the agreed-upon deal price. The scale of the deal also … [Read more...] about Hedge Funds Are Poised to Be Winners in AT&T-Time Warner Deal
This March 29, 2017, file photo shows a sign outside the Comcast Center in Philadelphia. Disney has made a $52.4 billion all-stock offer for the bulk of Twenty-First Century Fox, including the studios behind the “Avatar” movies, "The Simpsons" and "Modern Family," along with National Geographic. (Matt Rourke/AP file) NEW YORK — Comcast will likely bid for Fox’s entertainment business as early as Wednesday now that a federal judge has cleared AT&T’s $85 billion takeover of Time Warner. If Comcast succeeds in outbidding Disney for Fox, a major cable distributor would control even more channels on its lineup and those of its rivals. There are fears that it could lead to higher cable bills or hinder online alternatives. But U.S. District Judge Richard Leon cleared the AT&T deal Tuesday despite similar fears. The ruling signaled that federal regulators might have a hard time stopping companies from getting bigger by gobbling up rivals and the content … [Read more...] about Comcast sets sights on Fox after AT&T-Time Warner merger approved
Last Updated Dec 3, 2009 9:00 AM EST We're finally at the point where Time Warner (TWX) is going to spin off AOL, which was originally the acquired in one of the most ill-conceived merger deals of all time. And now what happens? Comcast (CMSA) decides that it isn't satisfied with creating a trend of increasing share prices. No, it sees a vacuum in the really bad idea space, and so will buy a controlling stake in NBC Universal, just because someone apparently had to. And they want to be in pictures. Doesn't everyone? Oh, there will be rationalizations aplenty. Content. Synergy. Vertical entertainment integration. You know -- all those things you heard when AOL was acquiring Time Warner, back when at least some people assumed that such corporate combinatorics were all the rage. But there were some clear reasons why the arguments held as much water as a ripped sieve: Running a distribution business through data pipes, which is what AOL did and Comcast does, is far different from running … [Read more...] about Comcast Not Satisfied With Success, Decides to Become AOL Time Warner
LOS ANGELES Time Warner (TWX) said Wednesday that it will spin off the magazine unit behind Time, Sports Illustrated and People into a separate, publicly traded company by the end of the year. CEO Jeff Bewkes said in a statement Wednesday that the decision to split off the Time magazine company will give Time Warner "strategic clarity" and enable it to focus on its TV networks including TNT, HBO and CNN, and its Warner Bros. studio, which produces movies and TV shows. He said the move would create value for shareholders, similar to the company's previous spin-offs of Time Warner Cable (TWC) and AOL (AOL). In recent weeks, Time Warner had been in talks to combine all of Meredith's (MDP) magazines with Time's lifestyle titles such as People, InStyle and Real Simple. But talks broke down over a value for the combined company and over which magazines from Time would be included in the mix, according to a person familiar with the matter. The person was not authorized to speak publicly and … [Read more...] about Time Warner to spin off Time magazines
AT&T (T) Chief Executive Randall Stephenson, whose planned $85.4 billion acquisition of Time Warner (TWX) stunned Wall Street and aroused concerns in Congress, has already started laying out his case for why the megadeal won’t hurt consumers. In a public appearance on Monday with his Time Warner counterpart, Jeffrey Bewkes, at the WSJDLive conference in Laguna Beach, California, Stephenson unveiled plans for a so-called over-the-top $35-per-month streaming video service that would offer 100 premium channels and wouldn’t require a subscription to a cable and satellite provider. It’s aimed at the mostly young consumers known as cord-cutters who are quitting traditional pay TV. Critics across the political spectrum and some Wall Street analysts, however, remain skeptical and wonder whether consumers will benefit from one of the biggest transactions in recent years. “From my observations over the years, megamergers of this kind almost never benefit average … [Read more...] about AT&T-Time Warner: Is there anything in it for you?
Time Warner (TWX) CEO Jeffrey Bewkes, who has earned more than $68 million in compensation over the past five years, stands to reap tens of millions more if he can shepherd the media and entertainment giant through its $85 billion sale to AT&T (T), according to an executive pay consultant. The 64-year-old Bewkes, who has headed the New York-based media conglomerate since 2008, would be able to receive about $32 million in salary and bonus continuation if his employment is “terminated without cause” for reasons including a company sale, according to executive compensation consultant Brian Foley. Unlike many Fortune 500 executives, Bewkes and other senior Time Warner managers don’t have specific “change-in-control” provisions in their employment agreements that would be triggered in the event of a sale of the company. But like other shareholders, Bewkes would benefit from a surge in the company’s stock price. And he now has more than 4.4 million … [Read more...] about Time Warner’s Jeff Bewkes could have a hefty payday
AT&T’s (T) planned $85 billion purchase of Time Warner (TWX) announced Saturday may face some of the same challenges as a megamerger from another era: AOL’s $182 billion acquisition in 2001 of, yes, Time Warner, the parent company of Warner Bros., HBO and CNN and the target of what many veterans of mergers and acquisitions consider to be Wall Street’s worst deal ever. Of course, many circumstances of the two deals are different. AOL was hurt as dotcom mania peaked by its fading dial-up Internet business. Plus, accounting gimmicks had goosed its growth numbers, which caused the combined AOL Time Warner to take a whopping $54 billion write-down in 2003 to reflect its diminishing value. New York-based Time Warner eventually spun off AOL in 2009, and the Internet publisher was acquired in 2015 for a modest $4.4 billion by AT&T rival Verizon (VZ). Verizon now also plans to buy Internet pioneer Yahoo (YHOO) for $4.8 billion. “AOL and Time Warner were about as … [Read more...] about A second big buyout for Time Warner. Should investors run?