AT&T officially acquired Time Warner for an amount estimated to be near $85.4 billion. According to a statement made last week by AT&T officials, executives will “head its media and wireless businesses following the close.”
Beginning August 1st, John Stankey will lead the transition of Time Warner’s integration before becoming the chief executive of media business. The current chief strategy officer is John Donovan, who will become the chief executive of AT&T Communications, which will include a combination of AT&T and DirecTV business affairs. The acquisition was made by AT&T to further develop their portfolio and gain control of cable TV channels HBO and CNN, film studio Warner Bros, and other entertainment assets.
Besides Stankey’s new role, global marketing officer Lori Lee will run AT&T International, which includes over 13 million consumers and businesses in Mexico and also a pay-based TV service in 11 countries in both Latin America and the Caribbean.
Bloomberg also reported that CEO Randall L. Stephenson may give up his position, but the company denied the claim by stating Stephenson is essential to AT&T’s future success and will remain as the CEO of the multinational telecommunications company. Stephenson also commented on the acquisition by stating, “We look forward to completing the deal and delivering for customers the many benefits of this merger.”
There is speculation that the separation of Time Warner and DirecTV may appeal to antitrust regulators receiving the acquisition. Some suggest that AT&T’s purchase may use the new entertainment outlets to “strangle potential competitors.” Critics say the company may tangle with competitors particularly with news channel CNN in today’s era where news and the accessibility of current events are convenient.
AT&T has acquired some valuable assets with the merger and it will be interesting to see if they will surpass Verizon as the world’s #1 telecommunications company.