AT&T Acquiring Time Warner

OneofthebiggestnewsthatrecentlycameoutwastheannouncementofUStelecomfirmATTacquiringmediacompanyTimeWarnerforawhopping$85。

4billionincashandstock。

Theresultwouldbethecreationofatelecomgiantmergingwithamediagianttobecomeanevenbiggerbehemoth。

Inabusinessmindset,theacquisitionmakessense。

TimeWarnerprovidesacollectionofvaluablemediapropertiesthatproducecontentsuchasmovies,music,sportseventsandmore。

ATTprovidesthemeansofdistributingthatcontentthroughitsmobileplatform,theinternet,conventionalTVandtheatres。

Withthisacquisition,itwillbeeasierforATTtoprovideawiderangeofmediacontentforitssubscriberswithouttheneedtogothroughlicensingdeals。

Andwithtonsofcontentavailable,itwillbeeasiertoprovideitscustomerbasewithadifferentnumberofproductoptionsthroughitscurrentbusiness,nottomentiontheopportunitiesavailableforthebusinessesthatitisacquiring。

Inshort,thecompanymayhaveasizableadvantageovercompetitorsinthetelecomindustrywiththisacquisition。

Andjustlikewiththedifferentacquisitionsandmergersofthisscaleinthepast,itmaylikelygettheattentionoftheregulatorybodies。

Firstoff,therewouldbeconcernswhetherthemergerwillresulttoanunfairadvantageovercompetitorsthatwillleadtoaneventualmonopolyofthemarket。

Evenwhilebothboardofdirectorswillwanttomoveonwiththemerger,itisnotasurething。

Andwithanacquisitionthisbig,thereisboundtobesomechallengesahead。

BothcompaniesareeyeingthedealtobeconsummatedsometimeinMarchofnextyear。


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