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
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Last Updated Dec 23, 2009 4:39 PM EST Nothing quite says "Happy New Year" like a feud between cable operators and media companies. Last year, we had Time Warner Cable's notorious showdown with Viacom. This year, courtesy of a media war, we're being treated to Time Warner Cable (and Bright House) vs. News Corp., with the latter charging the former is asking so much in terms of carriage fees that it may stop carrying Fox altogether, right before some of its heavy-hitters, such as "American Idol" and "24" begin their seasons. Yeah, like that'll happen. Even as they feud, Time Warner Cable and News Corp. need each other, now more than ever. In these days of changing viewership habits and shifting business models, preserving the status quo for consumers, by any means necessary, is what it's all about. And, neither Time Warner Cable, nor News Corp., nor Bright House needs to be reminding consumers that getting the TV channels and programs one wants is no longer an all-or-nothing game. … [Read more...] about Time Warner Cable, News Corp., Let Me Tell You Why You Need Each Other
Last Updated Jan 5, 2010 8:26 AM EST A temporary blackout of Fox TV series and football games from Time Warner Cable systems threatened for New Year's day due to a retransmission fee dispute signals a bigger upset in 2010: the morphing of free broadcasters into multi-screen paid content providers. The days of free TV are waning. While a prolonged stand-off was averted, with Time Warner Cable and Fox settling in time to accommodate New Year's football games, such fee disputes will intensify. Broadcast TV networks are scrambling for new ways to finance the programs being distributed well beyond prime time. The transformation that is underway will jolt couch potatoes out of their long-seated complacency and forever change the face of American television. Having steadily lost viewers and advertising dollars to their cable counterparts, the Big 4 TV networks now are fighting for economic survival by insisting on a second revenue stream of access fees from cable operators and consumers. A … [Read more...] about Fox Battle With Time Warner Cable Signals the End of Free TV
Time Warner Cable announced Monday a preliminary agreement with Juno Online Services Inc. to offer high-speed Internet service to cable customers, the companies said. The New York-based company will be the first new Internet service provider to reach an agreement with Time Warner Cable for broadband access, since the announcement of Time Warner's merger with America Online. Time Warner Cable currently provides broadband Internet access through Road Runner. CBS MarketWatch reports that under the deal, both companies will market Juno Express to their customers and will be able to price and package it independently. Time Warner will be responsible for installing the service in customers' homes. New York-based Time Warner's promise to open its cable system to competing Internet service providers is being carefully monitored by regulators. The issue was highlighted on Thursday during Federal Communications Commissions hearings on the Time Warner-AOL merger. The merger has been criticized … [Read more...] about CBS News Logo Juno Half Way In With Time Warner
Comcast's (CMCSA) $45.2 billion takeover of Time Warner Cable (TWC) would place too much power over the nation's cable and broadband markets into the hands of one company and should be blocked by regulators, according to a New York Times editorial. The merged company would control 30 percent of the U.S. pay television market and service about 40 percent of high-speed Internet users. Though Philadelphia-based Comcast has argued that consumers won't be hurt by the merger since it doesn't compete directly with Time Warner Cable in any markets, the Times and other critics aren't buying that argument. For instance, as the newspaper notes, FCC data shows that 64 percent of U.S. homes have at most two choices for broadband service. Consumers are at a disadvantage as a result. "Wireless services can handle streaming video, but many customers of Verizon or AT&T would blow through their monthly wireless data plan by streaming just one two-hour high-definition movie, at which point they … [Read more...] about Comcast-Time Warner Cable deal should be blocked, NY Times says
Facing opposition from federal antitrust enforcers, Comcast (CMCSA) said Friday that it is ending its $45.2 billion bid for Time Warner Cable. "Today, we move on," said Comcast CEO Brian Roberts in a statement issued before financial markets opened. "Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn't agree, we could walk away." Comcast, the nation's largest cable company as well as the top broadband provider, agreed to buy No. 2 Time Warner Cable (TWC) in early 2014 for $158.82 per share. But concerns that the merger, which would have given Comcast between 35 percent and 50 percent of the nation's broadband Internet market and 30 percent of the paid TV segment, could could run afoul of antitrust restrictions emerged quickly. The companies faced critical regulators worried about the potential impact of the merger on consumers. The FCC planned to advise taking the deal to an administrative law judge for a … [Read more...] about Comcast walks away from $45.2B deal for Time Warner Cable
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?
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?
LOS ANGELESOnline video site Hulu is again up for sale, with Yahoo and pay TV operators DirecTV and Time Warner Cable among the seven bidders, according to a person with direct knowledge of the matter. The person wasn't authorized to speak publicly and spoke Friday on condition of anonymity, after several news outlets reported on the bidding. The person didn't offer details on the prices offered. Published reports have pegged a bid by a group led by former News Corp. executive Peter Chernin at $500 million. The other three bidders were all private equity firms: Kohlberg Kravis Roberts & Co.; Guggenheim Partners; and Silver Lake, in partnership with talent agency William Morris Endeavor, according to the person.All Things D reported Yahoo's bid is in the $600 million to $800 million range. The person said the bidders would be narrowed down in the coming weeks. The Walt Disney Co. and News Corp. control Hulu through their broadcast subsidiaries, ABC and Fox. Comcast Corp., owner of … [Read more...] about CBS News Logo Report: Hulu bidders include Yahoo, DirecTV, Time Warner
Healthy competitionAs with Comcast-NBC, the question will be whether AT&T and Time Warner could crush competitors. There seems to be less reason for concern than seven years ago, said Jennifer Rie of Bloomberg Intelligence.“Competition has flourished, and consumers are no longer locked into traditional cable packages,” she said. Kimmelman, who opposes the merger, points to a different threat. While there’s a boom in complementary video services, such as Netflix and Hulu, it’s harder to find cheap, skinny TV packages that directly challenge cable leaders like AT&T and Comcast. “It’s that category,” Kimmelman said, “that the government will argue is in greater jeopardy.”Leon’s recent rulings on procedural matters provide a sense of how he’s approaching the case. In late February, he denied AT&T’s request for additional records between the Justice Department and White House.AT&T wants to … [Read more...] about Why can’t feds block AT&T-Time Warner? ‘It’s not exactly a unicorn!’ judge says