AT&T announced recently that it purchased Time Warner Inc. for more than $85 billion, which works out to $107.50 per share. Both companies expect the deal to close before the end of next year. If it pans out, AT&T CEO Randall Stephenson would become the new company’s head man, with Time Warner Chief Jeff Bewkes remaining for an unspecified interim period as an advisor.
“Premium content always wins,” said Stephenson in a press release about the deal. “It has been true on the big screen, the TV screen and now it’s proving true on the mobile screen.” The new company plans to be the first U.S. wireless company to compete directly with cable companies by selling an online video bundle that approximates a traditional pay-tv package, bolstered by the big names it owns, such as CNN, HBO, and TNT, not to mention Warner Bros. film and TV studio.