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AT&T has completed its purchase of Time Warner, a deal originally valued at $85.4 billion when it was announced in October 2016.
Earlier this week, a U.S. judge sided with AT&T after the Justice Department sued the company to block the deal. After losing the case, the Justice Department made no further recommendations against the deal and AT&T wrapped up the legal paperwork quickly. Time Warner — and now AT&T — owns Warner Bros., DC Comics, HBO, and Turner, which in turn owns CNN and other media properties.
“Combine [Warner’s content] with AT&T’s strengths in direct-to-consumer distribution, and we offer customers a differentiated, high-quality, mobile-first entertainment experience,” said Randall Stephenson, chairman and CEO of AT&T in a prepared statement.
“We’re going to bring a fresh approach to how the media and entertainment industry works for consumers, content creators, distributors and advertisers.”
Many fear the deal will lead to less choice and higher prices for consumers. Moving forward, AT&T will consist of four core businesses: AT&T Communications (mobile, broadband), AT&T media (Turner, HBO), AT&T International (mobile in Mexico), and AT&T’s advertising and analytics. AT&T says it will create a formal name for this last business unit later in the year.
John Donovan will serve as CEO of AT&T Communications, John Stankey will serve as CEO of AT&T’s media business, Lori Lee will serve as CEO of AT&T International, and Brian Lesser will serve as CEO of AT&T’s ad and analytics business.
All four will report to Randall Stephenson, who remains chairman and CEO of AT&T Inc.
