AT&T Inc. (NYSE:T) will run its DirecTV satellite television and wireless businesses independently from Time Warner Inc’s media assets after its acquisition of the entertainment group. Acquiring Time Warner allows AT&T control of CNN and HBO, film studio Warner Bros and other desired media assets. The company’s post-merger plans were previously reported by Bloomberg News.
The agreement, reported in October, is considered as a bold move by the telecomm giant to buy content to stream over its platform. AT&T expects the programming will provide it a competitive edge in the wireless market. The agreement also brings an extensive wealth of user data for targeted advertising. This planned reorganization will leave company executives in charge of the merged firm. John Stankey, who presently heads DirecTV and other entertainment segments, will lead the media segment and John Donovan, the Chief Strategy Officer of AT&T who oversees operations and technology, will run the wireless segment.
Randall Stephenson, the CEO will serve as Chairman and CEO of the merged company after the completion of the deal. In an email, AT&T spokesman mentioned that as of now nothing is finalized on changes in the organizational structure and that Time Warner CEO Mr. Jeff Bewkes and Stephenson are still working on the plans.
Bob Quinn of AT&T reported that the firm anticipates to close the merger deal by the end of the year. He added that they are just going through the procedure, noting it also requires approvals from some global agencies as well as the U.S. Justice Department. The developments indicate that things will finalize by the end of 2017. Quinn declined to comment on whether the White House could look to intervene in the deal as some reports have indicated, citing unidentified White House advisors.
In the last trading session, the stock price of AT&T gained 0.39% to close the day at $36.13.
This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.