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
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
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
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?