What does it mean for Mexico’s purchase of Time Warner by AT&T? – Milenio.com

The acquisition by AT&T made of the producer of contents Time Warner itself may have implications for Mexico, as it is a company with operations in the country and has actions of the Sky in the united States, making it a partner of Televisa.

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industry Analysts highlight that AT&T follows the same business model throughout the region, so it is expected that in the markets where it has presence has implications in terms of the acquisition of Time Warner with the sale of content.

The fact that you follow the same strategy, it will arrive in the country, with contents.

"The options are diverse, but can reach the market through DirecTv or via an alliance with Televisa, partners through Sky, although this last may be more difficult for regulatory matters, which implies the participation of market too big", indicated.

follow the same steps, you will be in a very short period of time which will launch the offer contained in Mexico, because in addition to the have been left with a large debt (estimated at some 50 billion dollars), they must monetize quickly the new business.

last Saturday, AT&T and Time Warner reported that it reached a definitive agreement (accepted unanimously), under which the specific acquisition of the media company, a transaction in shares and cash valued at 107.50 dollars per share.

The purchase price implies a value of total capital costs 85.4 billion dollars and a transaction value of total of 108.7 billion, including net debt of Time Warner. After the transaction, the shareholders of this company will have between 14.4 per cent and 15.7 per cent of the shares of AT&T on a basis fully diluted based on the number of shares outstanding.

AT&T expects the deal to grow in the first year and billions of dollars in synergies of costs of annual rates of execution within three years of the closing of the agreement and expect to achieve higher revenue opportunities that neither of the two companies can obtain independently.

Time Warner will represent approximately 15 percent of the revenues of the combined company, offering diversification for content and outside the united States, including Latin America, where Time Warner has a majority stake in HBO Latin America service, OTT is available in 24 countries, in addition to AT&T is the main distributor of pay television.

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