AT&T will be buying Time Warner in one of the biggest deals this year. The two companies said both of their boards have unanimously approved the deal but the deal still needs approval from regulators.
If the takeover goes through, it would combine AT&T’s distribution network with content from the Warner Brothers film studios and the cable TV channels HBO and CNN.
AT&T’s Chairman described it as “a perfect match” but critics say it concentrates too much media power.
“This is a perfect match of two companies with complementary strengths who can bring a fresh approach to how the media and communications industry works for customers, content creators, distributors and advertisers,” said Randall Stephenson, Chairman and CEO of AT&T.
An AT&T statement said that aim of the deal was to give customers “unmatched choice, quality, value and experiences that will define the future of media and communications” and the new company would “lead the next wave of innovation in converging media and communications industry”.
AT&T will pay $107.50 for each Time Warner share, in a combination of cash and stock, worth $85.4bn overall, according to a statement.
AT&T said it expected the deal to be completed by the end of 2017.