Time Warner's shares surge after reports of its acquisition by AT&T for $86 billion
The deal will merge AT&T’s wireless, broadband and satellite TV brands with Time Warner’s entertainment offerings like TNT, CNN and HBO.
Shares of Time Warner soared 4.6% and ended 8% higher on Friday after reports said that AT&T is all set to acquire the entertainment giant. At one point during trading, its stocks broke a 15-year high, reported CNBC. AT&T shares, however, dropped 3% in the regular session and 1% in after-hour trading.
AT&T and Time Warner are likely to announce the acquisition on Monday. According to Reuters, the companies have agreed on most terms of the deal. AT&T will acquire Time Warner for $86 billion (Rs 5,72,000 crore approximately). Once the deal is done, it will be the biggest acquisition of the year, Bloomberg reported.
Officials from both Time Warner and AT&T are tight-lipped about the acquisition that will merge AT&T’s wireless, broadband and satellite TV brands with Time Warner’s entertainment offerings, including cable networks such as TNT, TBS, CNN, HBO and the Warner Bros film and TV studio.
The possibility of the deal between the telecommunications conglomerate and the entertainment giant comes as more customers in United States are opting to watch shows on their smartphones and tablets. According to experts, the buyout can prove to be a powerful advertising play for AT&T and leverage data on telecommunications customers.