AT&T-Time Warner: Understanding the Potential Benefits

The proposed merger between AT&T (T) and Time Warner (TWX), announced in October 2016 for $85.4 billion, is now being blocked by the DOJ (US Department of Justice), which believes that this “vertical integration” deal might end competition. AT&T’s acquisition of Time Warner would give AT&T access to Time Warner’s media assets, including HBO (Home Box Officer), Turner Broadcasting, the Warner Bros. studio, and cable networks including TNT, TBS, and CNN—in addition to a 10% stake in Internet video provider Hulu.