AT&T is one of the largest providers of wireless phone and Internet service. It also recently acquired the DirecTV satellite TV business. The recent deal of acquiring Time Warner is yet to be reviewed by government regulators and could take over a year to complete. Purchasing Time Warner will give AT&T entry into entertainment.
AT&T will be paying $107.50 per share to the Time Warner. AT&T-Time Warner is a union of programming and distribution.
Time Warner CEO Jeff Bewkes and AT&T CEO Randall Stephenson said the two companies were in talks since August. Both the companies have same view of the world and so negotiations were very easy and smooth.
The deal will save Time Warner from the hands of Verizon, Comcast and Apple which are AT&T‘s biggest rivals.