AT&T to buy Time Warner for $85 billion, create telecom-media giant

NEW YORK - AT&T Inc (T.N) said on Saturday it agreed to buy Time Warner Inc (TWX.N) for $85.4 billion, the boldest move yet by a telecommunications company to acquire content to stream over its high-speed network to attract a growing number of online viewers.

The biggest deal in the world this year will, if approved by regulators, give AT&T control of cable TV channels HBO and CNN, film studio Warner Bros and other coveted media assets. The tie-up will likely face intense scrutiny by U.S. antitrust enforcers worried that AT&T might try to limit distribution of Time Warner material.

AT&T will pay $107.50 per Time Warner share, in a combination of cash and stock, worth $85.4 billion overall, according to a company statement. AT&T said it expected to close the deal by the end of 2017.

Dallas-based AT&T said it and Time Warner were determining which Federal Communications Commission licenses, if any, would be transferred to AT&T in the deal.

Several U.S. lawmakers were already worried about cable company Comcast Corp's (CMCSA.O) $30 billion acquisition of NBCUniversal, creating an industry behemoth. They argued for close regulatory scrutiny of the AT&T deal.

U.S. Republican presidential nominee Donald Trump, who has complained about media coverage of his campaign, said at a rally on Saturday he would block any AT&T-Time Warner deal if he wins the Nov. 8 election.

"It's too much concentration of power in the hands of too few," said Trump.

Representatives of his Democratic rival, Hillary Clinton, did not immediately respond to a request for comment.

CONTENT PLUS DELIVERY

AT&T, whose main wireless phone and broadband service business is showing signs of slowing, has already made moves to turn itself into a media powerhouse. It bought satellite TV provider DirecTV last year for $48.5 billion.

It had about 142 million North American wireless subscribers as of June 30, and about 38 million video subscribers through DirecTV and its U-verse service.

New York-based Time Warner is a major force in movies, TV and video games. Its assets include the HBO, CNN, TBS and TNT networks as well as the Warner Bros film studio, producer of the “Batman” and “Harry Potter” film franchises. The company also owns a 10 percent stake in video streaming site Hulu. The HBO network alone has more than 130 million subscribers.

The deal is the latest in the consolidation of the telecom and media sectors, coming on the heels of AT&T's purchase of NBCUniversal. AT&T's wireless rival Verizon Communications Inc (VZ.N) is in the process of buying internet company Yahoo Inc (YHOO.O) for about $4.8 billion.

Time Warner Chief Executive Officer Jeff Bewkes rejected an $80 billion offer from Twenty-First Century Fox Inc (FOXA.O) in 2014.

5G IS COMING
Owning more content gives cable and telecom companies bargaining leverage with other content companies as customers demand smaller, hand-picked cable offerings or switch to watching online. New mobile technology including next-generation 5G networks could make a content tie-up especially attractive for wireless providers.

"We think 5G mobile is coming, we think 5G mobile is an epic game-changer," Rich Tullo, director of research at Albert Fried & Co, said in a research note, adding that mobile providers would be in position to disrupt traditional pay-TV services.

A previous Time Warner blockbuster deal, its 2000 merger with AOL, is now considered one of the most ill-advised corporate marriages on record.

(Additional reporting by David Shepardson, Liana Baker, Malathi Nayak and Diane Bartz; Writing by Bill Rigby; Editing by David Gregorio)

source: www.abs-cbnnews.com

HGTV now available in PH

MANILA -- Filipinos can now watch HGTV, a home and lifestyle entertainment channel in the U.S., on cable TV in the Philippines.

In a statement, Scripps Networks Interactive announced that HGTV will start airing on SKYCable and Cignal Digital TV on Sunday, March 1.

For SkyCable subscribers, HGTV will be available on channels 88 (SD) and 246 (HD), while the launch date for Cignal Digital TV and its assigned channel have yet to be announced.

Before the Philippines, HGTV was also recently launched in Singapore, Australia and Mongolia.

According to Scripps Networks Interactive managing director for Asia-Pacific Derek Chang, HGTV is thankful for the support given by SkyCable and Cignal in bringing the home and lifestyle channel to the Philippines.

As demand for lifestyle channels rises in Asia, HGTV hopes to add to the variety of content that viewers are looking for, he said.

"HGTV is the first regional channel dedicated exclusively to the growing home and lifestyle category in Asia and is seeing great traction with our advertisers, affiliates and audiences alike," Chang said.

Among the shows that will air on the channel are "Property Brothers," "Buying and Selling," "Kitchen Cousins" and "The High Low Project."

Scripps Networks announced that it will also produce short-form local content, such as "Extreme Homes" and "I Like This."

source: www.abs-cbnnews.com

CNN Philippines to air on free TV by 2015

MANILA, Philippines – CNN Philippines will begin airing on free-to-air television as well as cable and pay TV by 2015.

Nine Media Corp., led by its chairman Ambassador Antonio Cabangon-Chua, has formalized its partnership with Turner Broadcasting System Asia Pacific to launch CNN Philippines in the country.

CNN Philippines will be available in 2015 on free TV in Manila RPN-TV9, Cebu RPN-TV9, Davao RPN-TV9, Zamboanga RPN-TV5, Baguio RPN-TV12, and Bacolod RPN-TV8.

The channel will also available in cable TV via Sky Cable in Metro Manila, Cebu, Davao, Bacolod, Iloilo, and Baguio and via Destiny Cable, Cablelink, and Cignal.

A news website, CNNPhilippines.com, will also be launched in the first quarter of 2015.

Cabangon-Chua said negotiations to bring CNN in the country started in June last year.

“It was properly studied that why it took so long. It is mutually beneficial. It is not only about business. We will help the industry itself,” Cabangon-Chua said.

“By integrating local elements and content in its programming, CNN Philippines brings together world-class local and international content for Filipino audiences,” he added.

The former Ambassador to Laos also said CNN Philippines does not intend to compete with the country’s established networks ABS-CBN and GMA Network Inc.

“We don’t [intend] to compete, we will do it on our own. We will set an example to serve the Filipinos. Media is a very powerful tool, it can make or break our person. Our goal is to help and not to be destructive,” he said.

Nine Media president Benjamin Ramos said the brand licensing agreement with Turner Broadcasting System is valid for five years.

The rebranding to CNN Philippines will be RPN 9’s second in less than a year, following the change from Solar News Channel to 9TV in August.

The 9TV rebranding came after the acquisition of BusinessMirror owner Antonio Cabangon-Chua of a 34-percent stake in RPN-9, held by Solar TV Network's Willy Tieng.

The Benedicto family owns 32 percent of RPN 9 while government has a 20 percent interest in the broadcast company.

source: www.abs-cbnnews.com