AT&T and Time Warner on Saturday announced they had reached a merger deal, setting off alarm bells across the industry. AT&T has agreed to buy Time Warner for US$85.4 billion. At least a year's worth of regulatory scrutiny, public hearings and political maneuvering is expected.
The deal, which followed days of speculation and tightly held negotiations, essentially would create the industry's first vertically integrated mobile provider of premium cable.
AT&T, already the world's largest pay television provider and one of the biggest telecom providers in the world, would gain control over one of the world's top content companies, with properties including cable network HBO and news network in CNN.
The deal combines Time Warner's content with more than 100 million customers who subscribe to AT&T's TV, mobile and broadband services, he said.
