News broke late yesterday that comms giant AT&T which has been looking at ways to make a big entrance into the media industry is close to announcing a deal to buy media giant TimeWarner. The news sent TimeWarner’s stock soaring almost 8%. If you remember it was just two years ago that Media Mogul Rupert Murdoch made an offer for the company but it was shot down by CEO Jeff Bewkes and the company’s board. Well this morning it was announced that AT&T has agreed in principle to buy the media giant for $85 billion in a deal that will create a new media and communications giant and former News Corp President Peter Chernin may end up running the show.
The deal, which has been agreed on most terms and could be announced as early as Sunday, would be one of the largest in recent years in the sector as telecommunications companies look to combine content and distribution to capture customers replacing traditional pay-TV packages with more streamlined offerings and online delivery. AT&T, which sells wireless phone and broadband services, has already made moves to turn itself into a media powerhouse, buying satellite TV provider DirecTV last year for $48.5 billion.
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