Acquisition of Time Warner by AT&T

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AT&T first announced its cash-and-stock acquisition of Time Warner on October 22, 2016. As part of their definitive agreement, AT&T would acquire Time Warner for $85.4 billion and assume the company's debt obligations for $23.3 billion, corresponding to a total amount of the transaction of $108.7 billion. Time Warner shareholders were issued up to $101.73 per share by AT&T. The deal between the two companies was structured as a tax-free vertical merger. At the time of the merger's announcement, AT&T was the world's largest telecommunications company, and the biggest pay TV distributor in the United States after completing its purchase of DirecTV. Wanting to diversify into entertainment, AT&T began considering several M&A deals before finalizing its agreement with Time Warner. To finance the transaction, AT&T signed a $40 billion unsecured bridge loan with Bank of America and JPMorgan. Early reactions to the proposed deal were mostly negative, as many advocacy groups, regulatory agencies...

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