After beating the Justice Department in court, AT&T said it completed its acquisition of Time Warner.
“The content and creative talent at Warner Bros., HBO and Turner are first-rate. Combine all that with AT&T’s strengths in direct-to-consumer distribution, and we offer customers a differentiated, high-quality, mobile-first entertainment experience,” said AT&T CEO Randall Stephenson. “We’re going to bring a fresh approach to how the media and entertainment industry works for consumers, content creators, distributors and advertisers.”
Stephenson said the company will offer premium content, direct to consumer distribution and high speed networks.
AT&T will be segmented into four businesses:
· AT&T Communications provides mobile, broadband, video and other communications services to U.S.-based consumers and nearly 3.5 million companies. Revenues from these services totaled more than $150 billion in 2017.
· AT&T’s media business consists of HBO, Turner and Warner Bros. Together, these businesses had revenues of more than $31 billion in 2017. A new name for this business will be announced later.
· AT&T International provides mobile services in Mexico to consumers and businesses, plus pay-TV service across 11 countries in South America and the Caribbean. It had revenues of more than $8 billion in 2017.
· AT&T’s advertising and analytics business provides marketers with advanced advertising solutions using valuable customer insights from AT&T’s TV, mobile and broadband services, combined with extensive ad inventory from Turner and AT&T’s pay-TV services. A name for this company will be announced in the future.
Time Warner CEO Jeff Bewkes will serve as a senior advisor to AT&T during a transition period. His direct reports, including the heads of Turner, HBO and Warner Bros., will report to John Stankey, CEO of AT&T’s media business.