AT&T, the American multinational telecommunications giant, has agreed to buy Time Warner, the home of HBO and CNN, for about $85.4 billion. The announcement was made on Saturday 22 October, 2016.
Time Warner, the American media and entertainment conglomerate, was formed in 1990 through the merger of Time and Warner Communications. Currently, its assets include Home Box Office (HBO), Turner Broadcasting System, The CW Television Network, Warner Bros., CNN, DC Comics, and around 10 per cent of Hulu.
It is also currently the world’s third largest television networks and film TV and entertainment company in terms of revenue after Comcast and The Walt Disney Company.
AT&T on the other hand is the second largest provider of mobile telephone services in the US. It also provides broadband subscription television services through DirecTV. It is the largest telecommunications company in the world by revenue.
AT&T, chief executive, Randall Stephenson would head the new company. The companies said that Time Warner chief executive Jeff Bewkes would stay for an interim period following the close of the deal to help with the transition.
The large library of content will have to be managed by AT&T however, what will it do with the content is still unknown.