AT&T reaches $85 billion deal to acquire Time Warner

AT&T Inc. announced Saturday evening it has agreed to buy Time Warner Inc. for $84.5 billion, a price point of $107.50 a share, split equally between cash and stock. The merger is expected to be complete by the end of next year, and the combined company will be headed by current AT&T Chief Executive Randall Stephenson.

"It's a great fit, and it creates immediate and long-term value for our shareholders," Stephenson said — but it still has to get approval from Washington, which in a populist political climate may make the process difficult or shut it down entirely. Republican Donald Trump has already said his administration would not permit the deal.

The merger will pair AT&T's wireless phone service with Time Warner's visual media, including networks like CNN, TNT, and HBO as well as the Warner Bros. film and television studio. This combination would permit the new company to "disrupt the traditional entertainment model and push the boundaries on mobile content availability for the benefit of customers" by offering an online subscription package to wireless customers.

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