Image: CNBCAT&T has agreed a deal to acquire Time Warner (which owns HBO, CNN and Warner Brothers, among other businesses). The deal will need the approval of US regulators and is one of the largest acquisitions ever agreed. The companies believe that the deal will get the approval it will need. AT&T is the second largest wireless telco in the US, behind Verizon, but ahead of Verizon on overall size.
Analyst Comment
The Financial Times drew parallels with the Comcast acquisition of NBC which has meant improvements in the performance of the NBC TV network and Universal Studios and pointed out that the better performance was not based on synergies between the content creation and distribution organisations. It also points out that that deal was done when NBC’s share price was at a low point, while Time Warner’s is not. (BR)
