It isn’t the first time that Time Warner - or for that matter, any media giant - is being purchased by a tech giant. In fact, back in 2000, AOL merged with Time Warner in a whopping $167 billion deal. Now, AT&T announced that it will acquire Time Warner for $85.4 billion. But what does all this mean?
Media and telecom companies aren’t really rivals. Telecom companies will sell you phones and connections (in it’s simplest terms) and media companies produce content, be it news channels or film production houses. However, the boom in technology has forced media companies to harness new means to distribute content, and tech giants are betting their success on this. Why would anybody buy an Apple TV if it had no Netflix, YouTube or HBO on it?
By buying Time Warner, AT&T will earn unrivalled advantage over its competitors. By delivering affordable media solutions to its customers, AT&T can promote sales of its products. A data plan on which you could watch Game Of Thrones for free would be a killer deal! Time Warner, too, will benefit from this, as AT&T will provide a definitive solution to content delivery - perhaps by putting an app on your Android home screen! (That won’t happen. Hopefully.) The 100 million+ AT&T subscribers will enjoy Time Warner’s premium video content through their devices.
If this acquisition takes place successfully, Time Warner’s biggest subsidiaries, including CNN, HBO, Turner, DC (comics) and Warner Bros./New Line Cinema will indirectly be a part of AT&T, making the second largest communication giant in the US also a giant media production company. This is, if the acquisition is approved by regulators. Let’s wait till 2017!
Read the official post on AT&T's website
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