AT&T Inc. (NYSE:T) reported that its executives will run its media and wireless segments following the finalization of its $85.4 billion acquisition deal of Time Warner Inc (NYSE:TWX). As of August 1, John Stankey, who presently runs DirecTV and other entertainment segments for the number 2 U.S. wireless carrier, will run the team associated with Time Warner’s integration before becoming chief executive of the media segment once the merger is done. John Donovan, the CSO, has been selected as CEO of AT&T Communications, which will comprise AT&T’s DirecTV and wireless businesses.
The deal, anticipated to complete by the close of the year, would offer AT&T control of CNN and HBO, Warner Bros and other desired media assets. It still requires nod from the U.S. Justice Department. The company also mentioned that Lori Lee will manage AT&T’s global business in addition to her duties as global marketing officer. All the three executives will report to AT&T CEO Randall Stephenson, like before.
A source updated Reuters earlier in July that AT&T would manage its DirecTV and wireless satellite television segments separately from Time Warner’s media assets after its acquisition of the entertainment unit.
In the recently announced second quarter report, AT&T posted revenues of $39.8 billion that were in line with Street consensus projections, but still showcased a drop of 2% YoY due to consumer mobility and legacy wireline problems. On the other hand, adjusted EPS of $0.79 surpassed projections by five cents, rising a promising more than 10% compared to year-ago levels. Full-year projection was maintained, with the market betting on a top line drop of 1.5% and EPS jump of 2.0%.
In the last trading session, the shares price of AT&T declined more than 1% to close the day at $39. After the recent decline, the market cap of company stands around $240 billion.