Who owns AT&T? With the acquisition of Time Warner, this question is more pertinent than ever.
AT&T was founded in 1885 as the American Telephone and Telegraph Company. It has since acquired DirecTV and owns a significant stake in HBO and CNN, among other companies. AT&T has long been one of the largest landline telephone service and cell phone service providers in America. There are three main reasons why the company’s recent acquisition of Time Warner is so important.
Who Owns At&T
AT&T was founded in 1885 as the American Telephone and Telegraph Company to connect both sides of the Atlantic. In 1885, there were only two phones in the US. However, within the next 15 years, AT&T had built a presence throughout the country.
The network of wires that now connects the entire country was completed in 1923, at which point the company’s name was shortened to the AT&T Corporation. In 1991, the company was acquired by SBC Communications, which AT&T later acquired in 2006. AT&T’s assets included a telephone monopoly in Mexico and a second major landline monopoly in Germany.
These assets are now what makes up AT&T’s fibre-optic network.
What the Acquisition of Time Warner Means
First and foremost, the transaction has put AT&T into the pay-TV business, a sector it has long avoided. With over 100 million pay-TV customers nationwide, the merger is expected to increase AT&T’s potential market share drastically. This could greatly strengthen its position in the competitive field from competitors like Verizon (VZ) and Comcast (CMCSA).
Another benefit to the AT&T conglomerate is the threat it poses to the big tech companies like Facebook (FB), Amazon (AMZN) and Google (GOOG). These players have been gradually dominating the digital advertising market.
On top of all this, the merger is also expected to drive down the cost of TV channels, allowing AT&T to compete with cable companies even more.
AT&T also holds more than 53 million wireless customers.
The History of AT&T
The first major deal AT&T did to grow its footprint was with PanAm Telephone. In 1981, the company agreed to merge with this company. At that time, AT&T already had a stake in the large American landline telephone company Bell Atlantic. As well as owning a stake in some of the largest wireless service providers in the United States, it also had a major stake in computer service provider Western Union. With its acquisition of PanAm Telephone, it also held a controlling stake in the world’s second-largest travel provider, Sabre, which made booking hotels and flights easy.
It is perhaps its most significant deal; AT&T paid a whopping $49.5 billion to acquire SBC Communications in 2006.
Facts About Time Warner
Like the rest of the AT&T conglomerate, Time Warner is best known for its network of premium channels, including HBO, CNN, and TNT. The news company has been at the forefront of the mainstream media, providing coverage of some of the biggest news events of the last two decades. The acquisition is poised to bring more blockbuster content to AT&T’s network.
The major selling point of the acquisition is that AT&T has the resources to deliver more value to subscribers. Time Warner currently manages a $30 billion annual programming budget, which will skyrocket following the merger. This means that AT&T can produce or acquire new shows and movies at a significant rate, which will only help the company’s growing customer base.
The Future of AT&T and Time Warner
As one of the biggest telecommunications providers in the US, the AT&T/Time Warner acquisition makes a lot of sense for both companies, which have struggled to keep pace with competitors in recent years. The deal is expected to produce $1.5 billion in cost savings and is currently awaiting approval from regulators in the US and Europe.
What Does This Deal Mean for Consumers?
In short, the AT&T/Time Warner acquisition means that AT&T will have much more power to provide consumers with the content they want to watch. At present, Time Warner’s cable channels such as HBO and CNN offer a diverse range of documentaries, sports and movies, which has helped them thrive in a competitive market.
Thanks For Reading our Article; Who Owns At&T?
Suppose you have any further questions regarding this article; Who Owns At&T? You can leave us a comment.
Our blog itsknows tells you who owns what to help you increase your awareness and general knowledge.