AT&T Buying HBO And CNN Owner Time Warner For $85.4 Billion
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NEW YORK (CBSDFW.COM/AP) — Dallas-based AT&T is buying Time Warner, owner of the Warner Bros. movie studio as well as HBO and CNN, for $85.4 billion in a deal that could shake up the media landscape.
The merger combines a telecom giant that owns a leading cellphone business, DirecTV and internet service with the company behind some of the world's most popular entertainment. It's the latest tie-up between the owners of digital distribution networks — think cable and phone companies — and entertainment and news providers, one aimed at shoring up businesses upended by the internet.
The deal would make Time Warner the target of the two largest media-company acquisitions on record, according to Dealogic. The highest was AOL's disastrous $94 billion acquisition of Time Warner at the end of the dot-com boom.
"This is a perfect match of two companies with complementary strengths who can bring a fresh approach to how the media and communications industry works for customers, content creators, distributors and advertisers," said Randall Stephenson, AT&T chairman and CEO.
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