AT&T Reportedly Nearing Purchase Of Time Warner, Deal Could Materialize This Weekend
Yesterday, Bloomberg reported that executives for both companies have had extensive talks during the past few weeks regarding the deal. The publication went on to say that the talks were merely informal in nature and that specific financial terms hadn’t been discussed at this point.
However, according to The Wall Street Journal, its sources claim that the AT&T and Time Warner are already in “advanced talks” and that a deal could be announced as soon as this weekend. The Wall Street Journal’s sources also indicate that this would be a cash and stock deal, and that final financial terms have not yet been finalized.
A Time Warner acquisition would make AT&T a powerhouse telecommunications company, giving the company access to a wide swath of American’s through home internet, wireless internet, and pay-TV services. Bringing Time Warner under its wings would give it access to HBO, Cartoon Network, TNT, TBS CNN and other big name properties like Warner Bros. Entertainment and DC Entertainment.
We should mention that The Wall Street Journal says that the talks between the two companies have “come together quickly, are fluid, and still could fall through.” AT&T is down roughly 3.5 percent today (to $37.31), while Time Warner is up nearly 11 percent today (to $92.02) on news of an impending deal.
It should be noted that Time Warner has been courted previously in recent years. The company rejected a purchase offer from 21 Century Fox, which would have valued the company at $75 billion.