Study

AT&T Merger

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  • How much was the total enterprise value of the merger, including Time Warner's net debt?
    $108.7 billion
  • On what date was the AT&T-Time Warner merger officially announced?
    October 22, 2016
  • What significant position would the merged entity hold in the US media and telecommunications landscape?
    One of the largest media and telecommunications companies
  • By what year was the deal expected to be completed?
    2017
  • Who was the chairperson and CEO of Time Warner Group during the merger announcement?
    Jeff Bewkes
  • How much was the breakup fee Time Warner would have to pay AT&T if Time Warner cancelled the deal?
    $1.725 billion
  • In which city was AT&T headquartered?
    Dallas, Texas
  • What was the total equity value of the AT&T-Time Warner deal?
    $85.4 billion
  • What percentage premium did the acquisition price represent over Time Warner's pre-announcement stock price?
    35%
  • Which portfolio manager at Uria Investment was analyzing the AT&T-Time Warner merger?
    Janey Frank
  • What animation-focused cable channel is listed as part of Time Warner's Turner Broadcasting System assets?
    Cartoon Network
  • Before acquiring the AT&T name and brand in 2005, what was the acquiring company known as?
    SBC (Southwestern Bell Communications)
  • How was the payment structure of the deal divided between cash and stock?
    Half cash, half stock
  • Which investment firm employed Janey Frank, the portfolio manager analyzing the merger?
    Uria Investment
  • If the deal was blocked due to antitrust issues, what fee would AT&T owe Time Warner?
    $500 million
  • Who was the CEO of AT&T at the time of the merger announcement?
    Randall Stephenson
  • From which two banks did AT&T plan to get bridge loans to fund the cash portion of the deal?
    JPMorgan Chase and Bank of America Merrill Lynch
  • Which media company made an unsuccessful $80 billion bid to acquire Time Warner in 2014?
    21st Century Fox Inc.
  • What major US satellite TV provider did AT&T acquire in 2015 for $48.5 billion?
    DIRECTV
  • In which month and year did formal negotiations for the merger begin?
    August 2016
  • What was the per-share price AT&T offered to acquire Time Warner?
    $107.50
  • Where was Time Warner's headquarters located?
    New York