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AT&T Making Moves in the Business World

Dalton Collins, Staff Writer

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AT&T, a multinational telecommunications conglomerate, recently made an offer to purchase Time Warner Inc. for a sum of 85.4 billion dollars, a groundbreaking deal that could have an important impact on television as we know it. Time Warner is the multi-billion dollar company that owns HBO, TBS, Cartoon Network, CNN, and even sports channels like Bleacher Report, Nascar TV, NBA and WNBA TV, and PGA TV.

This acquisition could fundamentally change the way we watch television, as AT&T is one of the leading providers for television and phones. If this deal is agreed upon AT&T could be making some serious changes to the interface we use.

Advantages:

  • It could change the way things work in favor of the customer, offer more channels for free, or even offer free streaming to customers with certain plans to these very popular channels.
  • AT&T is has lately been hinting at a new kind of content, and CEO Randall Stevenson has been revealing how he thinks this deal would be a perfect time to unleash what they are working on.
  • It could provide a cheaper competitor for cable TV, as AT&T would take over the satellite television business, which could provide a cheaper solution, by way of AT&T not having any competitors.

There is one real disadvantage to this deal, which is that the company would be the sole owner of these channels so it could deny other television providers the opportunity to stream them. This would create a monopoly in the world of television, as many consumers would switch to AT&T. This goes hand-in-hand with having a cheaper solution, it depends on which way AT&T decides to take it.

Big deals like this one go through the government to make sure there is no discrepancy between contracts, and to make sure both sides get what they believe they are getting. The government is basically a mediator in this deal, and revising and checking the entire thing could take a few years. These companies will read through the contracts to make sure both sides of the deal are fair and there is no missed fine print that will cause unhappiness on either side. It could take a few years, but if the deal is passed, customers will experience significant change in the world of television. Time will determine whether that change is for the better or for the worse.

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AT&T Making Moves in the Business World