AT&T and Time Warner Merge Essay Simple

AT & T Company has been charting a course to take over Time Warner in a merger deal and on Saturday it fell in the public domain that the deal received signing. The acquisition of the Time Warner got premised on speed so as to satisfy the expectations of consumers and changes in the media industry CITATION Bri16 \l 1033 (Stelter). The deal brings about varied reactions from consumers, and the details of the merger alongside the effects will receive discussion as below.

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According to Randall Stephenson, the AT&T CEO, the addition of Time Warner in business line will aid in bringing unique experiences to customers regarding the mobility world and TV CITATION Bri16 \l 1033 (Stelter). The Washington regulators will exercise lengthy review before the final acknowledgment for approval at the end of next year.

The customers of AT&T will not get subjected to immediate changes since the wireless service will not fluctuate as a result of the merger CITATION Bre16 \l 1033 (Arends). However, there is an anticipated change to the way individuals connect and consume media and AT&T wants to take the lead role in the changes. The merger targets to persuade customers with wireless media to pay for a bundle of channels in cable form without the usage of a cable cord CITATION Bri16 \l 1033 (Stelter).

The merger brought mixed reactions as regards the stock market. Consumer speculations resulted in the falls of Time Warners stock by 3% and AT&T stock drop by 1.7% since October 19th CITATION Bri16 \l 1033 (Stelter). The stock price of AT&T seems to be on a decline in the circulation of rumors about the merge. Wall Street think that the merger between AT&T and Time Warner is not a smart move. Similarly, investors seem to be worried about the spending of AT&T on Time Warner, and the envisioned financial and strategic benefits will not get realized as portrayed by Stephenson. Randall views the merger as one likely not to hurt competition since it is a vertical merger. Additionally, the merger should get viewed in a positive manner since it will cause bigger advertising deals and saving of cost. The suggestion by individuals that the synergy will get gained by the combination of consumer data will allow for better-targeted advertising CITATION Bre16 \l 1033 (Arends).

Finally, the article argues out that AT&T is at the forefront of delivering real benefits to consumers by the initiative pursued to launch innovative wireless solutions to the United States market. The possibility of more mergers between distribution and content companies are envisioned to take place, and AT&T will be on the forefront of the noble initiative.

Work Cited

BIBLIOGRAPHY \l 1033 Arends, Brett. AT&T and Time Warner deal: Everything you need to know. 24 10 2016. 25 10 2016.Retrieved: https://eresearch.fidelity.com/eresearch/markets_sectors/news/story.jhtml?storyid=201610242047MRKTWTCHNEWS_SVC000553&provider=MRKTWTCH&product=NEWS_SVC&category=equity

Stelter, Brian. What the AT&T and Time Warner deal will mean for you. 24 10 2016. 25 10 2016.