AT&T COMPLETES ACQUISITION OF TIME WARNER INC .

* AT&T PURCHASED TIME WARNER, THE C ABLE TELEVISION

COMPANY, FOR $85 BILLION .
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 AT&T COMPLETES
ACQUISITION OF
TIME WARNER INC.

AT&T purchased Time Warner, the cable

television company, for $85 billion
AT&T Inc. (NYSE:T) has completed its
acquisition of Time Warner Inc., bringing
together global media and entertainment
leaders Warner Bros., HBO and Turner
with AT&T’s leadership in technology and
its video, mobile and broadband customer
relationships.
 Premium Content: Broadly distributed, robust premium content
portfolio that combines leading movies and shows from Warner Bros.,
HBO and Turner, along with more targeted digital content from Bleacher
Report, FilmStruck and AT&T’s investment in Otter Media, among others.

Direct to Consumer Distribution (D2C): AT&T has more than 170

OBJECTIVE FOR million D2C relationships across its TV, video streaming, mobile and
broadband services in the U.S., mobile in Mexico, TV in Latin America, in
ACQUISTIONS addition to D2C digital properties such as HBO NOW, Boomerang,
FilmStruck and CNN.com.

High-Speed Networks: AT&T‘s leading wireless and fiber network,

including investments in new technology such as 5G, will provide the
network bandwidth required as customers increase engagement with
premium video and emerging 4K and virtual reality content.
 • AT&T Communications provides mobile, broadband, video
and other communications services to U.S.-based consumers and
nearly 3.5 million companies – from the smallest business to
nearly all the Fortune 1000 – with highly secure, smart solutions.
1. 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
2. later.
CHALLENGES
TO THIS DEAL
• 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
3. AT&T’s pay-TV services. A name for this company will be
announced in the future.
 Under the terms of the merger, Time Warner Inc. shareholders
received 1.437 shares of AT&T common stock, in addition to $53.75 in
cash, per share of Time Warner Inc.1 As a result, AT&T issued 1,185M
shares of common stock and paid $42.5B in cash. Including net debt
from Time Warner, we now have $180.4B in net debt.
• We will begin consolidating Time Warner Inc. results effective June
15, 2018.
• The company expects the acquisition to provide significant financial
benefits:
MARKET • -Accretive year-one adjusted earnings per share and free cash flow;
REACTION strengthened dividend coverage
• -Increased synergies to $2.5 billion
• $1.5 billion in annualized cost synergies by end of year 3 following
close
• $1 billion of annualized revenue synergies by end of year 3
• -Maintain solid balance sheet and improved credit metrics
• Net debt to adjusted EBITDA 2.9x at close
• 2.5x at end of year 1; return to historical levels by end of year 4
S U B M I T T E D B Y: -

1 . A D I T YA T R I PAT H I ( 1 5 / I E C / 0 7 5 )

2 . C H I R AG B H AT I ( 1 5 / I E C / 0 6 8 )

3.SHUBHANSHU KUMAR(15/ICS/050)