US telecoms giant to acquire entertainment group for almost $86 billion.
In what could be one of the biggest deals of the year, US telecoms company AT&T is to acquire entertainment group Time Warner for close to $86 billion.
The takeover – described as a ‘perfect match’ by AT&T’s chairman – would combine AT&T’s distribution network with content from the Warner Brothers film studios and TV channels HBO and CNN.
However, the deal still needs approval from US antitrust regulators and is likely to face close scrutiny.
BBC correspondent Joe Lynam commented on BBC Online: “[The deal] could be deemed anti-competitive by regulators because AT&T already owns mobile phone, broadband and cable TV networks, and allowing it to control the shows as well might deprive consumers of choice.”
AT&T will pay $107.50 for each Time Warner share, in a combination of cash and stock, worth $85.4bn overall, according to a statement.
AT&T said it expected the deal to be completed by the end of 2017.
Time Warner previously rejected an $80bn offer from Twenty-First Century Fox in 2014.
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