Time Warner Shareholders Approve AT&T Merger15 Feb, 2017 By: Erik Gruenwedel
As expected, Time Warner shareholders Feb. 15 approved AT&T’s $85.4 billion acquisition of the media company, whose assets include Warner Bros., HBO and Turner.
With 78% of shareholders voting, 99% of respondents approved the transaction, which still faces federal regulatory scrutiny. Time Warner shareholders’ approval isn’t surprising considering they stand to receive $107.50 per share in cash and stock — more than 30% above the stock price when the deal was first announced last October.
“In addition to providing shareholders with immediate value and the ability to participate in the upside of the combined company, the deal advances our long-term operational strategy,” CEO Jeff Bewkes said in a statement.
The executive contends melding Warner Bros., HBO and Turner with AT&T’s distribution prowess will accelerate the media company’s ability to innovate, develop and deliver the next generation of video services.
“This makes] our content even more valuable to consumers and business partners,” Bewkes said.
Time Warner expects the deal to close by the end of the year.