AT&T has officially announced that it has reached an agreement to purchase entertainment conglomerate, Time Warner. The deal is worth $85.4 billion with AT&T paying Time Warner shareholders $107.50 a share, which will be a combination of cash and AT&T stock.
AT&T's press release states:
The deal combines Time Warner's vast library of content and ability to create new premium content that connects with audiences around the world, with AT&T's extensive customer relationships, world’s largest pay TV subscriber base and leading scale in TV, mobile and broadband distribution.
While this is a monumental move by AT&T, it isn't the first time the company has made a large purchase to expand its services and customer base. In 2014, AT&T went public with its plan to acquire DirecTV, which cost a reported $48.5 billion. If the Time Warner purchase is approved by regulators, AT&T will gain multiple companies like HBO and Warner Bros. Entertainment, which offer sought after properties like Game of Thrones and the Harry Potter series.