Time Warner's Market Value
When valued, Time Warner has been pitched at about $107.50 per share, and that comes as 10% higher than the price of the closing share on Friday. Time Warner shareholders will be receiving $53.75 per share in cash and they will also enjoy an additional $53.75 from AT&T stock. In total, this deal has been expected to hit $108.7 billion if we will be including Time Warner’s net debt.
At&T will be enjoying significant growth as a result of this deal, and this will come approximately one year after it became the largest U.S. pay-TV distributor when it purchased satellite-TV provider DirecTV for $48.5 billion. AT&T posted 2015 revenue of $146.8 billion in 2015 while Time Warner only managed to clock $28.1 billion.
The deal will be making AT&T the largest corporate employer in the U.S. as it will be taking about 25,000 employees from Time Warner in addition to its 281,000 employees.