Connect with us

Business

Why AT&T Acquiring Time Warner Makes Perfect Sense

Published

on

AT&T may be looking to transform into an advertising and media company. Word is the company is looking at acquiring Time Warner Cable. With Comcast and Verizon already owning cable pipelines, is it too late for AT&T?

Time Warner Cable For AT&T

Trends in telecommunications are seeing major companies turn to media companies to stay relevant and competitive. Verizon purchased AOL in May, giving the company an in into advertising. Then Verizon added Yahoo in July – instantly adding 1 billion active users into the mix. Comcast owns NBC Universal, and recently purchased Dreamworks Animation in August. Telecommunications companies are branching into media. And AT&T needs to keep up.

AT&T knows this, having already acquired DirecTV in 2015. Between AT&T and DirecTV data, the company is a goldmine of consumer data. AT&T already knows where their customers are, what they’re watching, and even what they’re purchasing.

So how does AT&T utilize this data?

By buying a media company. AT&T already has the targeting information for consumers, but not the platform to show them ads. Buying a media company is a brilliant advertising play because it gives them an instant user base and content to advertise against. And with $7.2 billion in cash (according to Q2 earnings), AT&T has the means to make it happen. Time Warner failed to merge with FOX in 2014, and could be the perfect partner for AT&T.

However, there are possible hesitations. Up front, financial benefits aren’t particularly obvious. Without stand-alone financial reasons, a deal might need justification on competitive grounds as well as “opportunity costs and revenue synergies with benefits unlikely to accrue immediately.”

But if  AT&T controlled the media content and technology to place ads, it could help the company deliver cross-screen advertising placements. Advertisers could target viewers anytime anywhere on phones, TV, or web browsers, making the deal quite appealing to AT&T.

The idea makes too much sense not to happen. And based on Time Warner’s desire to strike a deal with FOX two years ago, look for this “rumor” to become reality sooner rather than later.

Watch AT&T announces the merging here!

And when it does, look for AT&T (T) shares to rise.

Missed our yesterday's news? Check here as Oil Price surge as OPEC Members agrees to cut production.

Follow us on Facebook and Twitter for more news updates!


The statements, views, and opinions of any article, contribution, editorial, or advertisement in this publication are not necessarily those of The Capitalist or its editorial staff, and are not considered an endorsement, sponsorship, or recommendation of any referenced product, service, issuer, or groups of issuers.
This publication provides general information about certain subjects, and should not be construed or taken as advice (legal, financial, investment, tax, or otherwise). Do not construe or take any information in this publication as a solicitation, offer, opinion, or recommendation to buy or sell any securities, bonds, or other financial instruments or to provide any legal, financial, investment, tax, or other advice or service about the suitability or profitability of any financial instruments or investments.
The Capitalist disclaims any liability for the accuracy of or your reliance on any statements, views, opinions, or information in this publication.


 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Continue Reading

Copyright © 2023 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.

Is THE newsletter for…

INVESTORS TRADERS OWNERS

Stay up-to-date with the latest kick-ass interviews, podcasts, and more as we cover a wide range of topics, in the world of finance and technology. Don't miss out on our exclusive content featuring expert opinions and market insights delivered to your inbox 100% FREE!

SUBSCRIBE TODAY AND GET A FREE GIFT

Get ready to stay up-to-date with the latest business and market news from around the world!

The Capitalist is here to provide you with insightful data, analysis, and even videos to keep you informed.