In the wake of the recent acquisition of Time Warner, AT&T has renamed its business arm to WarnerMedia.
The deal brings Warner Bros., HBO and Turner into AT&T’s portfolio.
“The content and creative talent at Warner Bros., HBO and Turner are first-rate,” says Randall Stephenson, chairman and chief executive officer, AT&T. “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. We’re going to bring a fresh approach to how the media and entertainment industry works for consumers, content creators, distributors and advertisers.”
AT&T will now work to transform the way that video is paid for, consumed and created through three key components; premium content which will be broadly distributed and composed of movies and shows from Warner Bros., HBO and Turner as well as Bleacher Report, FilmStruck and AT&T’s investment in Otter Media; direct to consumer distribution which will bring digital properties including HBO NOW, Boomerang, FilmStruck and CNN.com to AT&T’ platforms across TV, video streaming, mobile and broadband services
In the U.S., mobile in Mexico and TV in Latin America; and investment in high-speed networks and new technology will aim to increase engagement with premium video, 4K and virtual reality content.
Jeff Bewkes, former chairman and chief executive officer or Time Warner will stay on with the company as a senior advisor through the transition period. He is expected to retire following the transition.
“Jeff is an outstanding leader and one of the most accomplished CEOs around,” says Stephenson. “He and his team have built a global leader in media and entertainment. And I greatly appreciate his continued counsel,”
As previously announced, John Donovan will serve as chief executive officer of AT&T Communications; John Stankey will serve as chief executive officer, AT&T’s media business; Lori Lee will serve as chief executive officer of AT&T International and global marketing officer, AT&T; Brian Lesser will work as chief executive officer of AT&T’s ad and analytics business. John Martin the current chief executive officer of Turner will exit the company. Turner President David Levy, Turner International president Gerhard Zeiler and CNN Worldwide president Jeff Zucker will assume his duties.
Under the terms of the agreement, Time Warner shareholders received 1.437 shares of AT&T common stock and $53.75 in cash, per share of Time Warner. AT&T issued 1,185M shares of common stock and paid $42.5B cash.