AT&T Completes Time Warner Deal

Warner Bros., HBO and Turner are now officially part of AT&T following the telco giant’s completion of its acquisition of Time Warner.

AT&T was cleared to complete the $85-billion transaction this week by U.S. District Court Judge Richard Leon after the Department of Justice had sued to block the merger, which was announced back in October 2016. With the deal complete, Jeffrey Bewkes is out as chairman and CEO of Time Warner, serving as a senior advisor during the transition period. John Stankey, as CEO of AT&T’s media business, will assume responsibility for the assets Bewkes used to oversee. A new name for this business will be announced later.

Randall Stephenson, chairman and CEO of AT&T Inc., said in announcing the completion of the merger: “The content and creative talent at Warner Bros., HBO and Turner are first-rate. Combine all that with AT&T’s strengths in direct-to-consumer distribution, and we offer customers a differentiated, high-quality, mobile-first entertainment experience. We’re going to bring a fresh approach to how the media and entertainment industry works for consumers, content creators, distributors and advertisers.”

The merged company will benefit from being built around three key pillars: premium content, direct-to-consumer distribution and high-speed networks. It will consist of four divisions: AT&T Communications, providing mobile, broadband, video and other communications services; a yet-to-be-named media business with HBO, Turner and Warner Bros.; AT&T International, providing mobile services in Mexico and pay-TV services in South America and the Caribbean; and an advertising and analytics business delivering insights from AT&T’s TV, mobile and broadband services and ad inventory from Turner and AT&T’s pay-TV services.