Sunday, October 23, 2016

AT&T changed the map of media with the purchase of Time Warner – THE NATION (Argentina)

NEW YORK.- In a huge deal that will change the landscape of the media, the giant phone AT&T agreed to buy Time Warner, which owns Warner Bros., HBO and CNN, by about 85,000 million dollars, reported yesterday the us media.

The agreement is the largest in the industry in recent years, in moments in which the signatures of telecommunications seek to combine content and distribution to capture more customers and to replace the traditional bundles of pay tv offers delivery and playback over the Internet.

According to sources close to the operation, the move will combine the telecommunications giant leader in mobile telephony with one of the leading companies in entertainment and information.

The republican Donald Trump said yesterday that, if he does win the presidential election, will oppose the settlement, because in their consideration concentrates too much power in the hands of a few.

For their part, spokespersons for the campaign, a democrat, chose not to comment on the operation to the query of the local media.

The American Association of the Cable reported yesterday that “the combination of content of value with the distribution of pay television causes harm to consumers and competition in the market of pay television”, and urged regulators to closely examine the deal between AT&T and Time Warner.

Companies that provide phone connections and Internet are investing in media to find new sources of revenue and to ensure not be relegated to be simply “silent actors”. Verizon bought by AOL last year and now proposed a deal with Yahoo to build a business of advertising digital. In addition, Comcast acquired NBC Universal in 2011.

The transaction values each share of Time Warner in 107,5 dollars, well above the 80 in the that held in the days leading up to information that you were aware of the agreement. AT&T has a market capitalization 233,000 million dollars, while Time Warner was 68,000 million.

Agencies AP and EFE

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