UPDATE – AT&T has officially bought Time Warner for $85 billion. The announcement was made Saturday evening and this will aid the communications company move beyond the Internet and wireless service as it explores programming.
This move will help AT&T gain entry into the entertainment industry as well as sports and news. This will allow them to have “power to shape the future of media,” according to CNN Money.
AT&T is in “accelerated” talks to purchase the DC parent company Time Warner. An announcement will probably come as soon as Monday. The deal would merge together the communications company with Time Warner whose holdings includes Warner Bros. and other cable networks such as TBS, TNT, and CNN.
The discussion of this merger occurred initially on Thursday when the two companies started talking about it, according to Bloomberg.
— Harlequin of Hate (@FreddieMKR) October 21, 2016
This is likely due in part as customers decide to do away with their cable subscriptions. This proves be quite challenging to TV companies.
People tend to be using more and more portable devices such as tablets and smartphones to view their content these days.
Amir Rozwadowski, head of telecom services research at Barclays, spoke of this trend in millennials using such devices.
“When you think about how content is being consumed today, more and more of millennials are consuming content over tablets, over their smartphones. When you think about that opportunity set, there’s a tremendous opportunity to push content to those subscribers.”
Time Warner and AT&T declined to comment on the situation and Twentieth-First Century Fox said they have no plans to bid.
If this goes through, this will prove advantageous to the communications company according to Screen Geek as DC Entertainment, Warner Bros. film, and television’s Hanna-Barbera, CNN, HBO, and the Cartoon Network. Time Warner jointly owns The CW.