The telecom group AT&T and Time Warner announced on Saturday, the biggest alliance of the year. Indeed, the former hopes to buy the latter for $84.5 billion. It would be a nice victory for Time Warner and its boss, Jeff Bewkes. Bewkes didn’t agree with 21st Century Fox two years ago but this time, the deal seems to be good.
However, experts are not confident about the issue of this arrangement. Indeed, they feel insecure about the fusion of these companies because one of them is from the world of phones and the other one is from media.
Barry Diller, a very famous person in the world of media said : ” I can’t see why AT&T could afford Time Warner.” The company has already tried to make an alliance with AOL in 2000, but it was a big failure so that both are separated today.
The situation of AT&T is alarming too. The group has only $7 billion of treasury and $120 billion of liability!
Lots of people do not agree with that; among them Hillary Clinton and Donald Trump, the two candidates to the presidency, who are both decided to block the agreement of the two groups.
If things continue like that, the union must be concluded in 2017… or perhaps never.
Gaetan Icapi, IEJ 1D