Agreement from 80 mld between At&t and Time Warner. Lighthouse authorities – The Sun 24 Hours

At&t buy Time Warner. The two giants, reports the Wall Street Journal, have reached an agreement, for a value of more than $ 80 billion. An amount to be paid for half in cash and half in securities. The agreement allows At&t to lay the foundations for a flourishing empire and brought home by Time Warner, one of the ‘jewels’ in the media industry. And open up a new era in the media sector, launching a new wave of acquisitions. The sector, struggling with a drastic transformation that has driven him to reinvent himself, and is already in turmoil, as evidenced by the negotiations for a merger between Viacom and Cbs, which may close within the year.

And the attention is high on the company hi-tech hunting for content for their new services and to challenge big as Netflix and Amazon. This is confirmed by the interest of Apple to Time Warner, but also the agreement between Cbs and Google, which is preparing to launch a new web tv on YouTube. Unless of twists and offers rival, the agreement between At&t and Time Warner will be reached in the next few hours and announced on Monday.

Average, AT&T and Time Warner, just a step from the acquisition

The ball will pass then to the authorities, calls to assess the agreement. An examination is not easy in an election year. The words of Donald Trump, the republican candidate, confirm this: “my administration would not approve the agreement. So as not to be approved the one between Comcast and NBCUniversal. Arrangements such as these threaten democracy,” he said.

The union between At&t and Time Warner, and is likely to raise, in any administration, questions of competition law, with the wedding between the two giants, which may reduce competition and threaten the innovation brought forward by start-ups. Just the opposition of the authorities has blown up the marriage between Comcast and Time Warner in the wake of fears of concentration of the distribution and ownership of content. At&t has in its tradition the acquisition of the market leader. Time Warner, as it is Disney and its 150 billion dollars of market capitalization. And if from one side the acquisition will strengthen At&t, on the other hand it is a risky gamble with the colossus that is likely to pay a high price for an asset like Time Warner, the value of which may decrease with the decline of traditional pay-tv.

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