Time Warner shareholders approve $85 billion sale to AT&T

Time Warner shareholders approved the $85.4 billion sale of the nation’s third-largest entertainment company to AT&T. The acquisition requires regulatory approval from the Department of Justice.

AT&T reached an agreement to buy Time Warner for $85.4 billion. The deal combines the nation’s largest pay-TV provider and second largest wireless carrier with a media giant that owns HBO, CNN, TNT, TBS, Major League Baseball, and Warner Brothers, among others.

Initially investors were skeptical the deal would close. However, the deal spread has been closing steadily, which indicates that many on Wall Street are betting the deal will be approved and completed. AT&T agreed to pay $107.50 per share for Time Warner, whose stock is currently trading at $96.32, about eleven dollars below the per-share sale price, the highest trading levels in five years.

Links:

Time Warner shareholders vote to sell company to AT&T for $85.4 billion (Los Angeles Times, Feb. 12, 2017)

AT&T to buy Time Warner for $85 billion (Speed Matters, Oct. 24, 2016)