Resultados 1 a 7 de 7
  1. #1
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010

    [EN] AT&T compra Time Warner

    The $86 billion deal is a vertical integration of a distribution company and a content company.

    It pairs AT&T’s millions of wireless and pay-television subscribers with Time Warner’s deep media lineup including networks such as CNN, TNT, the prized HBO channel and Warner Bros. film and TV studio.

    Time Warner had a market capitalization of $68 billion before The Wall Street Journal reported on the advanced talks Friday, while AT&T’s was $233 billion.

    The last comparable merger was Comcast’s $30 billion deal for NBC Universal in 2009.

    By Thomas Gryta,
    Keach Hagey and
    Dana Cimilluca
    Updated Oct. 22, 2016 4:50 p.m. ET

    AT&T Inc. has reached an agreement to buy Time Warner Inc. for $86 billion, according to a person familiar with the plans, in a deal that would transform the phone company into a media giant.

    The wireless carrier agreed to pay $107.50 a share, the person said. The deal is half cash and half stock, according to people familiar with the transaction.

    AT&T Chief Executive Randall Stephenson will head the new company and Time Warner Chief Executive Jeff Bewkes will leave after an interim period following the deal, the person said.

    The deal is expected to be announced Saturday evening, the people said.

    The acquisition pushes the carrier deeper into the traditional entertainment business at a time of stalled wireless growth. For Time Warner, the deal represents a victory for Mr. Bewkes, 64 years old, who took some heat from investors for rebuffing a takeover bid two years ago from 21st Century Fox at $85 a share. (21st Century Fox and Wall Street Journal-owner News Corp share common ownership.)

    It pairs AT&T’s millions of wireless and pay-television subscribers with Time Warner’s deep media lineup including networks such as CNN, TNT, the prized HBO channel and Warner Bros. film and TV studio.

    For Mr. Stephenson, the deal will help the carrier potentially find new areas of growth as its core wireless business has become saturated and its market share leaves little room for acquisitions. For Time Warner, the tie-up comes amid pressure for media companies to bulk up or join with larger entities in the face of consolidation among pay-TV distributors and viewers increasingly leaving their expensive cable packages for cheaper online streaming options.

    A merger of the companies would be the most ambitious marriage of content and distribution in the media and telecom industries since Comcast Corp. ’s purchase of NBCUniversal and would create a behemoth to rival that cable giant. A rigorous regulatory review is expected and the acquisition of Time Warner likely wouldn’t close until late 2017, people close to the process said.

    Regulators have indicated misgivings about the prior Comcast-NBCU deal—in particular, whether obligations placed on Comcast were tough enough and enforceable—so it is unclear if they will be willing to bless another such merger. At the very least, former regulatory officials say there could be significant conditions placed on the combination. Republican presidential nominee Donald Trump said his administration wouldn’t approve a proposed merger of AT&T and Time Warner because he opposes further consolidation in the media industry.

    The transaction would be far and away the biggest media deal of recent years, potentially breathing new life into media deal-making. Time Warner had a market capitalization of $68 billion before The Wall Street Journal reported on the advanced talks Friday, while AT&T’s was $233 billion.

    On Friday, Time Warner shares closed at $89.48, up 8%, while AT&T fell 3% to $37.49.

    AT&T has been shifting its sights to media and video in recent years, diving deeper into television after its nearly $50 billion deal to acquire satellite television provider DirecTV last year. That made AT&T, which traces its roots to the old ‘Ma Bell, the country’s biggest pay television provider as well as its second-largest wireless operator.

    Time Warner “is the last scaled content play that’s acquirable,” said Michael Nathanson, an analyst at MoffettNathanson, noting that the rest of the major media companies are either so valuable they would be difficult to acquire, such as Walt Disney Co. , or family controlled, such as 21st Century Fox, CBS and Viacom. “HBO, Turner and Warner Bros. are really good assets for a future of nonlinear consumption.”

    The sale represents a strategic departure for Mr. Bewkes, who spent his nearly nine years as CEO slimming down the onetime media behemoth, unwinding the AOL merger and spinning out Time Warner Cable and Time Inc. The three businesses that remained—HBO, Turner Broadcasting and Warner Bros.—are focused solely on video content. In lieu of acquisitions, Mr. Bewkes focused on containing costs and buying back stock.

    A cerebral Stanford M.B.A. known for his financial acumen, Mr. Bewkes’s strategy was influenced in part by scars from the disastrous AOL-Time Warner merger, which left shareholders in the combined company—including employees such as Mr. Bewkes—in a lurch after AOL’s business collapsed.

    Much has changed in the media landscape since the AOL-Time Warner marriage unraveled, Mr. Bewkes spun off Time Warner Cable and even since he rebuffed Fox’s takeover offer.

    For Mr. Bewkes, selling now could turn out to be a shrewd bet, given the uncertainty of the media business. Cord-cutting has so far only been a relatively minor drag on industry results. It is the threat of future disruption that is the most potent overhang on media stocks, and it is unclear when the pace of change will accelerate.

    Within Time Warner, CNN is enjoying a huge viewership boost, with a doubling of its ratings year-over-year because of interest in the presidential election, but retaining that audience when the political circus subsides will be a huge challenge.

    Meanwhile, the company has long-term investments for the rights to carry MLB and NBA games via TBS and TNT that have long looked like sure bets, as sports have been more immune to ratings pressure. But cracks have appeared in the NFL’s viewership this season, raising questions about whether sports TV may face a reckoning. HBO continues to be a creative and financial juggernaut but competition with Netflix, Amazon, Showtime, FX and others to work with top talent is only intensifying by the year.

    If completed, Dallas-based AT&T would rely on television and media for more than 40% of its revenue, based on second-quarter financial results, strongly diversifying the company away from a U.S. wireless business that has become increasing competitive.

    Mr. Stephenson has been reshaping AT&T’s strategy in recent years, particularly since consolidation in the wireless sector hasn’t left room for major deals. AT&T’s attempt to buy T-Mobile was killed by regulators in 2011.

    With its newfound scale from the DirecTV acquisition, AT&T spent the past year aggressively negotiating deals with content owners and plans to launch an over-the-top video service by year’s end, which would allow users to stream programming over the Web without the need for a satellite dish. Owning Time Warner would give AT&T assets that would help along those streaming media ambitions.

    For AT&T, the deal would eclipse DirecTV and may be its biggest acquisition since paying $85 billion for BellSouth in 2006. With $117.3 billion in long-term debt at the end of June, buying Time Warner could give AT&T a huge balance sheet with debt hitting almost $200 billion, according to analysts at New Street Research. The issuance of new stock, a common move in AT&T’s deal making, increases its total dividend costs, above the almost $12 billion in current annual payouts.
    Última edição por 5ms; 22-10-2016 às 20:23.

  2. #2
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010

    Content + Delivery


    AT&T had about 142 million North American wireless subscribers as of June 30, and about 38 million video subscribers through DirecTV and its U-verse service.

    New York-based Time Warner is a major force in movies, TV and video games. Its assets include the HBO, CNN, TBS and TNT networks as well as the Warner Bros film studio. The company also owns a 10 percent stake in video streaming site Hulu. The HBO network alone has more than 130 million subscribers.

    AT&T is following in the footsteps of cable company Comcast Corp, which acquired NBCUniversal and DreamWorks Animation in a bid to control how television shows and movies are made and how they are delivered to viewers.


    Owning more content gives cable and telecom companies bargaining leverage with other content companies as customers demand smaller, hand-picked cable offerings. New mobile technology including next-generation 5G networks could make a content tie-up especially attractive for wireless providers.

    "We think 5G mobile is coming, we think 5G mobile is an epic game-changer," Rich Tullo, director of research at Albert Fried & Co, said in a research note, adding that mobile providers would be in position to disrupt traditional pay-TV services.

  3. #3
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010

    Talking Jornal do chefão da Amazon está preocupado com pacotes AT&T+TW

    Amazon vai experimentar na veia o próprio veneno.

    Why the rumored AT&T merger with Time Warner is such a huge deal

    By Brian Fung and Drew Harwell
    October 21 at 2:57 PM

    In what some analysts are calling an unprecedented “seismic shift” for the media and technology world, AT&T may soon buy the entertainment company Time Warner, a deal that could turn the legacy telecom carrier into a media titan the likes of which America has never seen.

    A combination between the two companies could rival some of the biggest mergers in history, with AT&T potentially gaining control over hugely valuable brands spanning television, film, sports, news, video games and mobile and residential Internet service.

    Bloomberg News reported that AT&T is close to buying Time Warner, whose roots date back to a 1920s magazine and film studio, for about $86 billion and that a deal could finalize over the weekend. Time Warner stock jumped nearly 8 percent in regular trading and another 5 percent after hours.

    The potential merger highlights one of the most definitive trends of the modern media business: the push from tech and telecommunications giants to control the lucrative, popular content they once passively supplied.

    It follows a wave of dealmaking and consolidation that could radically transform viewers' leisure time and media spending, including Comcast's purchase of NBCUniversal, Google's push into live-TV streaming, and the original-programming investments of Amazon and Netflix.

    That big wave of media change, analysts said, could just be getting started. Apple approached Time Warner about a potential combination deal several months ago and continues to watch negotiations, the Wall Street Journal reported Friday, citing unnamed sources. Apple did not immediately respond to requests for comment.

    A merger between AT&T and Time Warner would be a historic deal. For starters, it could suddenly give AT&T control over a massive number of the world's most valuable media brands. It would complete the transformation by the wireless carrier — already the nation's second-largest — into a fully fledged entertainment powerhouse, launching an entirely new chapter in the history of the telecommunications giant. And it would be no less monumental for the rest of the communications industry, a rapidly consolidating area of business in which Internet providers are increasingly playing a central role in how consumers work and play.

    Never before has a telecom company the size of AT&T sought to buy up a content firm like Time Warner, according to Craig Moffett, an industry analyst at MoffettNathanson.

    “A [telecom company] owning content is something that was expressly prohibited for a century” by the government, Moffett said, “and even now, it raises all kinds of unique questions.”

    The tie-up could see AT&T gain ownership over a dizzying array of household names. Time Warner — not to be confused with Time Warner Cable, which sold itself to Charter Communications earlier this year — owns HBO, meaning that AT&T could soon have the rights to “Game of Thrones,” “Westworld” and “True Detective.” It would control some of the most successful TV content in history, such as “The Sopranos” and “The Wire.” It could also benefit from all the subscription revenue from HBO, the most profitable cable subscription business in history, whose 130 million subscribers on cable and on HBO's online streaming app pay about $15 a month.

    AT&T would also own all the channels associated with the Turner Broadcasting System, including TNT, which is available in nearly 100 million pay-TV households. This means that shows such as “The Last Ship,” “Falling Skies” and “The Librarians” would be controlled, ultimately, by AT&T. The telecom could also own Turner Classic Movies and TBS, which includes programming such as “Full Frontal with Samantha Bee” and coverage of Major League Baseball. Under the Turner banner is an array of other sports programming, too, such as the Bleacher Report, and NBA Digital, a partnership with the National Basketball Association. For sports fans, this could mean much of the way they experience March Madness would be indirectly controlled by AT&T.

    Also potentially falling into AT&T's hands would be the news channel CNN and its multinational operations. From political debate coverage to on-scene reports about hurricanes, tuning into CNN would mean more revenue for AT&T.

    AT&T could come to own all of Warner Bros., which includes not only the Warner Bros. movie studio (which produced the hit “Harry Potter” films, “Inception” and “American Sniper”) but also New Line Cinema (which is responsible for the “Lord of the Rings” films, “Wedding Crashers” and even “The Notebook."). Warner Bros. also controls DC Comics, meaning AT&T would have the rights to Batman, Superman, Wonder Woman and a whole host of other pop culture icons.

    Time Warner could also offer AT&T lucrative media gold mines beyond traditional TV. The company’s Warner Bros. Interactive Entertainment division is one of America’s most prominent video-game publishers, helping develop the “Lego” series, the “Batman: Arkham” series and bestsellers like “The Witcher 3: Wild Hunt.” That division made more than $2 billion in revenue last year alone.

    Time Warner was the fourth-largest media company in America last year, with roughly $28 billion in revenue. Its film division has averaged roughly $4.5 billion in annual box office sales over the last five years. This year, it is the second-highest-grossing studio, behind Disney, having pulled in more than $1.5 billion from movies such as “Batman v. Superman: Dawn of Justice,” “Suicide Squad” and “Central Intelligence.”

    In short, an AT&T-Time Warner tie-up would create one of the most powerful combinations of content and distribution America has ever seen. And the implications would be far-reaching: AT&T could offer intricate cross-promotions between different parts of its business, similar to the way it has started bundling cellular service with DirecTV, the satellite TV company it purchased last year. It could make money by licensing shows and movies to other cable companies, and also compete against them by fleshing out the offerings of its own U-verse pay-TV service.

    A deal would come to epitomize the rapid, dramatic changes affecting the media and technology space. Content producers and cable companies alike are grappling with new Internet business models, seeking fresh ways to distribute their shows online as more consumers consider ditching the traditional cable bundle. Americans' media consumption is shifting to mobile devices, which is encouraging firms such as AT&T to bet big on wireless connectivity and forcing providers of fixed broadband to hunt for new ways to compete. Industries that previously had been insulated from one another by the limits of technology are now being forced to contend with each other as entertainment and communications converge on the Internet.

    In 2011, Comcast became one of the first companies to acknowledge the trend by buying up NBCUniversal, which created a media and distribution conglomerate that now controls theme parks, television shows and access to the Internet. At the time, antitrust regulators permitted the acquisition under certain conditions designed to keep Comcast from using the combined company to squeeze out the competition. But some analysts say those conditions weren't effective — and that AT&T may face similar concerns.

    “This would probably not be a slam dunk with regulators that likely have second thoughts after watching the ineffectiveness of behavioral remedies for the approval of Comcast’s acquisition of NBC,” said Walt Piecyk, a telecom analyst at BTIG.

    The atmosphere for mergers and acquisitions grew even dimmer in 2015, when the Federal Communications Commission and the Department of Justice moved to block Comcast's attempted purchase of Time Warner Cable. Federal officials argued that the deal would give Comcast so many Internet subscribers that it could use them as leverage against online businesses that needed access to Comcast's customers.

    Regulators would probably raise the same issues this time. It's unlikely they would let AT&T put Time Warner's content on its wireless or home Internet platform on an exclusive basis, analysts say. Nor would the government be eager to allow AT&T to exempt Time Warner programming from cellular data caps.

    “There'd be an enormous competitive concern about self-dealing, favoring their own properties to the detriment of competition,” said Gene Kimmelman, a former antitrust official at the Justice Department who is now the president of the consumer advocacy group Public Knowledge.

    Based on the restrictions regulators may impose to address those concerns, a merger between AT&T and Time Warner may be more trouble than it's worth, Moffett said.

    “There's no industrial logic to combining content and distribution,” he said. “It sounds good in theory, but it doesn't hold up very well when you poke at it.

    “I don't think you can give a merger like this much better than 50-50 odds,” he added.

  4. #4
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010

    AT&T And Time Warner Make It Official

    AT&T to Acquire Time Warner

    • New company with complementary strengths to lead the next wave of innovation in converging media and communications industry
      • Combination unlike any other — the world’s best premium content with the networks to deliver it to every screen, however customers want it
      • The future of video is mobile and the future of mobile is video
      • Time Warner is a global leader in creating premium content, has the largest film/TV studio in world and an unrivaled library of entertainment
      • AT&T has unmatched direct-to-customer distribution across TV, mobile and broadband in the U.S., mobile in Mexico and TV in Latin America.

    • Combined company positioned to create new customer choices — from content creation and distribution to a mobile-first experience that’s personal and social
      • Goal is to give customers unmatched choice, quality, value and experiences that will define the future of media and communications
      • Customer insights across TV, mobile and broadband will allow new company to: offer more relevant and valuable addressable advertising; innovate with ad-supported content models; better inform content creation; and make OTT and TV Everywhere products smarter and more personalized

    • Acquisition provides significant financial benefits
      • Accretive to AT&T in the first year after close on adjusted EPS & free cash flow per share basis
      • Improves AT&T’s dividend coverage
      • Improves AT&T’s revenue and earnings growth profile
      • Diversifies AT&T’s revenue mix and lowers capital intensity
      • Committed to strong balance sheet and maintaining investment-grade credit metrics

    • Delivers significant benefits for customers
      • Stronger competitive alternative to cable & other video providers
      • Provides better value, more choices, enhanced customer experience for over-the-top and mobile viewing
      • More innovation with ad-supported models that shift more cost of content creation from customers to advertisers

    October 22, 2016 07:35 PM Eastern Daylight Time DALLAS & NEW YORK--(BUSINESS WIRE)--AT&T Inc. (NYSE:T) and Time Warner Inc. (NYSE:TWX) today announced they have entered into a definitive agreement under which AT&T will acquire Time Warner in a stock-and-cash transaction valued at $107.50 per share. The agreement has been approved unanimously by the boards of directors of both companies.

    The deal combines Time Warner's vast library of content and ability to create new premium content that connects with audiences around the world, with AT&T's extensive customer relationships, world’s largest pay TV subscriber base and leading scale in TV, mobile and broadband distribution.

    “This is a perfect match of two companies with complementary strengths who can bring a fresh approach to how the media and communications industry works for customers, content creators, distributors and advertisers,” said Randall Stephenson, AT&T chairman and CEO. “Premium content always wins. It has been true on the big screen, the TV screen and now it’s proving true on the mobile screen. We’ll have the world’s best premium content with the networks to deliver it to every screen. A big customer pain point is paying for content once but not being able to access it on any device, anywhere. Our goal is to solve that. We intend to give customers unmatched choice, quality, value and experiences that will define the future of media and communications.

    “With great content, you can build truly differentiated video services, whether it’s traditional TV, OTT or mobile. Our TV, mobile and broadband distribution and direct customer relationships provide unique insights from which we can offer addressable advertising and better tailor content,” Stephenson said. “It’s an integrated approach and we believe it’s the model that wins over time.

    “Time Warner’s leadership, creative talent and content are second to none. Combine that with 100 million plus customers who subscribe to our TV, mobile and broadband services – and you have something really special,” said Stephenson. “It’s a great fit, and it creates immediate and long-term value for our shareholders.”

    Time Warner Chairman and CEO Jeff Bewkes said, “This is a great day for Time Warner and its shareholders. Combining with AT&T dramatically accelerates our ability to deliver our great brands and premium content to consumers on a multiplatform basis and to capitalize on the tremendous opportunities created by the growing demand for video content. That’s been one of our most important strategic priorities and we’re already making great progress — both in partnership with our distributors, and on our own by connecting directly with consumers. Joining forces with AT&T will allow us to innovate even more quickly and create more value for consumers along with all our distribution and marketing partners, and allow us to build on a track record of creative and financial excellence that is second to none in our industry. In fact, when we announce our 3Q earnings, we will report revenue and operating income growth at each of our divisions, as well as double-digit earnings growth.

    Bewkes continued, “This is a natural fit between two companies with great legacies of innovation that have shaped the modern media and communications landscape, and my senior management team and I are looking forward to working closely with Randall and our new colleagues as we begin to capture the tremendous opportunities this creates to make our content even more powerful, engaging and valuable for global audiences.”

    Time Warner is a global leader in media and entertainment with a great portfolio of content creation and aggregation, and iconic brands across video programming and TV/film production. Each of Time Warner’s three divisions is an industry leader: Turner consists of U.S. and international basic cable networks, including TNT, TBS, CNN and Cartoon Network/Adult Swim, and has sports right that include the National Basketball Association, NCAA Men’s Championship Basketball Tournament, and Major League Baseball; HBO, which consists of domestic premium pay television and streaming services (HBO Now, HBO Go) featuring such original series as Game of Thrones, VEEP, and Silicon Valley, as well as international premium & basic pay television and streaming services; and Warner Bros. Entertainment, which consists of television, feature film, home video and videogame production and distribution. Film franchises include Harry Potter, DC Entertainment, and LEGO; TV series produced include The Big Bang Theory, The Voice, and Gotham. Time Warner also has invested in over-the-top and digital media properties such as Bleacher Report, Hulu and Machinima.

    Customer Benefits

    The new company will deliver what customers want — enhanced access to premium content on all their devices, new choices for mobile and streaming video services and a stronger competitive alternative to cable TV companies.

    With a mobile network that covers more than 315 million people in the United States, the combined company will strive to become the first U.S. mobile provider to compete nationwide with cable companies in the provision of bundled mobile broadband and video. It will disrupt the traditional entertainment model and push the boundaries on mobile content availability for the benefit of customers. And it will deliver more innovation with new forms of original content built for mobile and social, which builds on Time Warner’s HBO Now and the upcoming launch of AT&T’s OTT offering DIRECTV NOW.

    Owning content will help AT&T innovate on new advertising options, which, combined with subscriptions, will help pay for the cost of content creation. This two-sided business model — advertising- and subscription-based — gives customers the largest amount of premium content at the best value.


  5. #5
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010
    Summary Terms of Transaction

    Time Warner shareholders will receive $107.50 per share under the terms of the merger, comprised of $53.75 per share in cash and $53.75 per share in AT&T stock. The stock portion will be subject to a collar such that Time Warner shareholders will receive 1.437 AT&T shares if AT&T’s average stock price is below $37.411 at closing and 1.3 AT&T shares if AT&T’s average stock price is above $41.349 at closing.

    This purchase price implies a total equity value of $85.4 billion and a total transaction value of $108.7 billion, including Time Warner’s net debt. Post-transaction, Time Warner shareholders will own between 14.4% and 15.7% of AT&T shares on a fully-diluted basis based on the number of AT&T shares outstanding today.

    The cash portion of the purchase price will be financed with new debt and cash on AT&T’s balance sheet. AT&T has an 18-month commitment for an unsecured bridge term facility for $40 billion.

    Transaction Will Result in Significant Financial Benefits

    AT&T expects the deal to be accretive in the first year after close on both an adjusted EPS and free cash flow per share basis.

    AT&T expects $1 billion in annual run rate cost synergies within 3 years of the deal closing. The expected cost synergies are primarily driven by corporate and procurement expenditures. In addition, over time, AT&T expects to achieve incremental revenue opportunities that neither company could obtain on a standalone basis.

    Given the structure of this transaction, which includes AT&T stock consideration as part of the deal, AT&T expects to continue to maintain a strong balance sheet following the transaction close and is committed to maintaining strong investment-grade credit metrics.

    By the end of the first year after close, AT&T expects net debt to adjusted EBITDA to be in the 2.5x range.

    Additionally, AT&T expects the deal to improve its dividend coverage and enhance its revenue and earnings growth profile.

    Time Warner provides AT&T with significant diversification benefits:

    • Diversified revenue mix — Time Warner will represent about 15% of the combined company’s revenues, offering diversification from content and from outside the United States, including Latin America, where Time Warner owns a majority stake in HBO Latin America, an OTT service available in 24 countries, and AT&T is the leading pay TV distributor.
    • Lower capital intensity — Time Warner’s business requires little in capital expenditures, which helps balance the higher capital intensity of AT&T’s existing business.
    • Regulation — Time Warner’s business is lightly regulated compared to much of AT&T’s existing operations.

    The merger is subject to approval by Time Warner Inc. shareholders and review by the U.S. Department of Justice. AT&T and Time Warner are currently determining which FCC licenses, if any, will be transferred to AT&T in connection with the transaction. To the extent that one or more licenses are to be transferred, those transfers are subject to FCC review. The transaction is expected to close before year-end 2017.

    Conference Call/Webcast

    On Monday, October 24, at 8:30 am ET, AT&T and Time Warner will host a webcast presentation to discuss the transaction and AT&T’s 3Q earnings. Links to the webcast and accompanying documents will be available on both AT&T’s and Time Warner’s Investor Relations websites. AT&T has cancelled its previously scheduled call to discuss earnings, which had been set for Tuesday, October 25.

    About AT&T

    AT&T Inc. (NYSE:T) helps millions around the globe connect with leading entertainment, mobile, high-speed Internet and voice services. We’re the world’s largest provider of pay TV. We have TV customers in the U.S. and 11 Latin American countries. We offer the best global coverage of any U.S. mobile provider*. And we help businesses worldwide serve their customers better with our mobility and highly secure cloud solutions.

    About Time Warner Inc.

    Time Warner Inc. (NYSE:TWX) is a global leader in media and entertainment with a great portfolio of content creation and aggregation, and iconic brands across video programming and TV/film production. Each of Time Warner’s three divisions is an industry leader: Turner consists of U.S. and international basic cable networks, including TNT, TBS, CNN and Cartoon Network/Adult Swim, and has sports right that include the National Basketball Association, NCAA Men’s Championship Basketball Tournament, and Major League Baseball; HBO, which consists of domestic premium pay television and streaming services (HBO Now, HBO Go) featuring such original series as Game of Thrones, VEEP, and Silicon Valley, as well as international premium & basic pay television and streaming services; and Warner Bros. Entertainment, which consists of television, feature film, home video and videogame production and distribution. Film franchises include Harry Potter, DC Entertainment, and LEGO; TV series produced include The Big Bang Theory, The Voice, and Gotham. Time Warner also has invested in over-the-top and digital media properties such as Bleacher Report, Hulu and Machinima.

  6. #6
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010

    In the world of media, bigger remains better

    By MICHAEL J. de la MERCED
    OCT. 23, 2016

    So in the wake of Comcast’s $30 billion takeover of NBCUniversal and Verizon Communications’ serial acquisitions of the Huffington Post and Yahoo, AT&T has bought one of the remaining crown jewels of the media world.

    The telecommunications giant agreed on Saturday to buy Time Warner, the home of HBO and CNN, for about $85.4 billion, creating a new colossus capable of both producing content and distributing it to millions with wireless phones, broadband subscriptions and satellite TV connections.

    The proposed deal is likely to spur yet more consolidation among media companies, which have already looked to partners to get bigger. This year, Lionsgate struck a deal to buy the pay-TV channel Starz for $4.4 billion. And the Redstone family, which controls both CBS and Viacom, has urged the corporate siblings, which split 10 years ago, to consider reuniting.

    AT&T and Time Warner said both of their boards unanimously approved the deal.

    “Premium content always wins,” Randall L. Stephenson, AT&T’s chief executive, said in a statement. “We’ll have the world’s best premium content with the networks to deliver it to every screen.”

    Most analysts and investors have noted that Time Warner was part of one of the biggest merger follies of all time, when it sold itself to AOL at the height of the dot-com boom. That combination — also pitched on the idea of uniting content and the internet — proved unwieldy and was later stripped apart to a few core businesses.

    This time, however, the rise of online outlets like Netflix, Amazon Prime and YouTube and the shift of younger customers from traditional media have pressured media companies to seek out consolidation partners. These media companies are anticipating drops in fees from cable service providers and declining revenue from advertisers. Getting bigger would give them more negotiating leverage with both service providers and with advertisers.

    Among their top priorities is finding new ways of reaching consumers. HBO, for example, offers its HBO Now service to deliver shows like “Game of Thrones” and “Westworld” to consumers who do not have cable subscriptions.

    Even Disney, widely seen as the strongest content company, with brands like Pixar, Marvel and Lucasfilm, has been grappling with how to overcome challenges facing its network channels. ESPN, which long served as a growth engine, is now facing declining ratings and subscriber erosion, putting advertising sales into question.

    “The biggest thing that we’re trying to do now is figure out what technology’s role is in distributing the great content that we have,” Robert A. Iger, Disney’s chief executive, said at a presentation at Boston College on Oct. 5. Noting the blue-chip entertainment brands controlled by Disney, Mr. Iger added, “In today’s world, it’s almost not enough to have all that stuff unless you have access to your consumer.”

    Comcast’s takeover of NBC has proved a model for this new world of media deal making. While the cable giant has occasionally been scrutinized for possible regulatory violations, NBCUniversal has generally thrived under its current ownership, with NBC enjoying a ratings comeback and Universal delivering a wide range of hit films, from blockbusters like “Jurassic World” to dramas like “Straight Outta Compton.”

    Still, Time Warner’s deal with AT&T is likely to face tough scrutiny from government regulators increasingly skeptical of power being consolidated among a few titans. Even Donald J. Trump, the Republican nominee for president, indicated on Saturday that he would block the merger if elected “because it’s too much concentration of power in the hands of too few.”

    Over the last decade, Time Warner has spent significant time selling or spinning off AOL, many of the Time Inc. stable of publications, and Time Warner Cable, which was sold to another cable operator. The remaining businesses are HBO, one of the most-admired pay-TV channels; Warner Bros. movie studios; and cable channels that include CNN, TNT, Turner Sports and TBS.

    Overseeing much of Time Warner’s downsizing was the company’s chief executive, Jeffrey Bewkes, for whom Saturday’s agreement serves as validation of sorts. Mr. Bewkes faced tough questions two years ago when he turned down 21st Century Fox’s bid of $85 a share, arguing that the offer sharply undervalued his company.

    Now, Mr. Bewkes has found a suitor willing to offer significantly more — $107.50 a share in cash and stock — and done so at a time when media companies are under pressure to strike their own deals.

    “Time Warner chairman and C.E.O. Jeff Bewkes and his senior management team can see where the entire legacy media world is headed: secular decline,” Richard Greenfield, a media analyst at BTIG, wrote in a research note on Saturday.

    Mr. Greenfield added, “We believe Bewkes will end up being remembered as the smartest C.E.O. in sector — knowing when to sell and not overstaying his welcome to maximize value for shareholders.”

    The announcement on Saturday also affirms the ambitious deal-making of AT&T. One of the former so-called Baby Bells that arose from the 1982 breakup of the original AT&T, the company has spent hundreds of billions of dollars on acquisitions to reconstitute some of its parent’s former empire.

    Much of the drive behind AT&T’s serial takeovers has been in search of growth. But the rate of growth of wireless subscribers has slowed as most Americans now own smartphones, leaving the company to find new avenues for sales.

    That has included buying DirecTV for $48.5 billion, adding satellite TV subscriptions as an additional source of negotiating leverage with content providers, along with the satellite company’s steady stream of cash.

    AT&T has also made other moves to acquire content. It has set up a joint venture with Peter Chernin, a prominent media executive, and the company was one of the bidders for Yahoo this year.

    The telecom company has also been working on its own online video service, for which Time Warner’s trove of media could prove enormously helpful.

    Still, AT&T’s biggest rivals have not stood still. Comcast struck an agreement this spring to buy DreamWorks Animation for $3.8 billion, adding the “Shrek” and “Kung Fu Panda” franchises to its media holdings.

    Verizon has charted a different course, focusing more on internet-based properties and advertising technology players rather than traditional media companies. Its $4.8 billion deal to buy Yahoo, rooted in the aging tech company’s hundreds of millions of users, follows previous takeovers of the Huffington Post and AOL.

    Other media companies are also likely to pursue deals. Smaller channel operators like Discovery Communications and AMC have long been discussed as potential merger partners with their peers, hoping to become bigger and perhaps more attractive to a bigger buyer down the line.

    In his research note on Saturday, Mr. Greenfield of BTIG speculated that a combined CBS and Viacom would also seek to expand through deal-making.

    Not everyone seems persuaded by the latest flurry of deal-making, however. In a Twitter message on Saturday, Steve Case, the former chief executive of AOL responsible for the doomed merger with Time Warner, wrote of AT&T’s move, “#DejaVu.”

    Cecilia Kang, Brooks Barnes and Andrew Ross Sorkin contributed reporting.

    A version of this article appears in print on October 23, 2016, on page A1 of the New York edition with the headline: AT&T Reaches $80 Billion Deal On Time Warner.
    Última edição por 5ms; 22-10-2016 às 23:34.

  7. #7
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010

    AT&T reserving capacity to support about 1M simultaneous DirecTV Now subscribers

    Dan Rayburn
    October 27, 2016

    Some analysts need to stop the insanity when it comes to the subscriber projections they are making for AT&T’s soon to be released DirecTV Now streaming service.

    I’ve read numbers from some projecting 2M to an outlandish MoffettNathanson report estimating that DirecTV Now could draw about 11M subscribers.

    I have confirmed that AT&T will be using at least three CDN partners, including Akamai, Level 3 and Limelight networks to deliver the streaming service.

    Between all three vendors, AT&T is reserving delivery capacity to support about 1M total simultaneous subscribers.

    While some have speculated the new AT&T service would be a financial windfall for Akamai since AT&T is a big reseller of Akamai’s services, the revenue impact is minimal. The service also won’t drive any substantial revenue for AT&T in the short or near term.

    Running the numbers, if AT&T signed up 1M subscribers on day one, and each subscriber watches 90 hours of video a month, (3 hours a day), the total volume of traffic per user would be 85GB, using the average bitrate of 2.1Mbps. Multiply that times 1M subs and the total volume of bits delivered each month would be 85,000,000GB per month. If each of the three CDNs all got 1/3 of the traffic and AT&T was paying $0.03 per GB delivered, the value of the contract to each CDN would be $850,000 a month.

    But AT&T won’t have 1M subscribers from day one and most users probably won’t watch 90 hours a month, or will watch some on mobile, which takes up far fewer bits. For the first few quarters the delivery business would only be worth about $250,000 to each CDN per month, as AT&T ramps.

    AT&T has said the service will cost $35 a month, but it is expected that price they are quoting will come with restrictions and caveats. For instance the need to take other AT&T services (wireless), a lower quality stream (bitrate), or the limitation of only being able to have one user stream from the service at a time. Earlier in the year when AT&T was talking about their new live offering, the company described the service as a way to “funnel” consumers to more expensive AT&T services and bundles.

    There are still a lot of unanswered questions about AT&T’s DirecTV Now service including the exact channel lineup, device/platform support, quality of the video, support for concurrent streaming within the same household and ease of use amongst others. All of these factor into determining the growth and popularity of the service, which has a direct impact on the value of the business to all of the CDN providers and AT&T.

    Updated: AT&T has launched a new site for their service and they list the Apple TV and Amazon Fire TV as being supported, hopefully additional hardware like the Roku, Xbox, and PS4 will also be supported at launch.

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