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AT/T Closes USD 85.4bn Acquisition of Time Warner.


15 June 2018 - Texas-based telecommunications company AT/T (NYSE: T) has closed the acquisition of New York-based media company Time Warner (NYSE: TWX) in a stock-and-cash transaction valued at USD 107.50 per share, the company said.

This deal was announced in October 2016.

The deal brings together global media and entertainment firms Warner Bros., HBO and Turner with AT and T's technology and its video, mobile and broadband customer relationships.

Under the terms of the merger, Time Warner Inc. shareholders received 1.4 shares of AT and T common stock, in addition to USD 53.75 in cash, per share of Time Warner Inc.

As a result, AT and T issued 1,185M shares of common stock and paid USD 42.5B in cash.

Including net debt from Time Warner, ATand T now has USD 180.4B in net debt.

This purchase price implies a total equity value of USD 85.4bn and a total transaction value of USD 108.7bn, including Time Warner's net debt.

Post-transaction, Time Warner shareholders will own between 14.4% and 15.7% of AT/T shares on a fully-diluted basis based on the number of AT/T shares outstanding in late 2016.

The cash portion of the purchase price will be financed with new debt and cash on AT/T's balance sheet. AT/T has an 18-month commitment for an unsecured bridge term facility for USD 40bn.

AT/T Inc. (NYSE: T) provides entertainment, mobile, high-speed Internet and voice services.

Country: USA

Sector: Telecommunications

Target: Time Warner

Buyer: AT/T


Deal size in USD: 85.4bn

Type: Corporate Acquisition

Financing: Cash and Stock

Status: Closed

Buyer advisor: , ,


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Publication:M & A Navigator
Date:Jun 15, 2018
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