After the recent lawsuit from the Department of Justice AT&T has pushed back the termination deadline for its planned $108.7 billion purchase of Time Warner. After announcing plans to push back the deadline today AT&T officially filed with the SEC for more time to close their Time Warner deal. This deal will give AT&T ownership over many popular channels including HBO, CNN, and Cartoon Network. (Note: Time Warner and Time Warner Cable are two different companies. This deal is only for Time Warner the entertainment company.)
Currently, the deal has been gaining approvals around the world but in the United States, the deal has been held up in a lengthy federal approval process. AT&T first announced their plans to buy Time Warner on October 22, 2016, with a termination date of October 22, 2017, if the deal did not get approval. (Most major deals have an out if they do not get federal approval.) Now AT&T has pushed the deadline for approval out to April 22, 2018.
“In accordance with the Agreement and Plan of Merger, dated as of October 22, 2016 (the “Merger Agreement”), among Time Warner, a Delaware corporation, AT&T, a Delaware corporation, West Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of AT&T, and West Merger Sub II, LLC, a Delaware limited liability company and a wholly owned subsidiary of AT&T, each of AT&T and Time Warner elected to further extend the “Termination Date” of the Merger Agreement to April 22, 2018.” AT&T said in their filing with the SEC.
As cord cutting and other pressures continue to take a bite out of traditional pay-TV services, AT&T seems to see Time Warner and their catalog of shows, movies, and networks as a way to diversify its business. The question now is if and when they will get approval.
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