Morningstar - ATT Inc. (T) ATT Pays Up For Time Warner as Wireless and Television Growth Remain Sluggish

Report

Morningstar

Michael Hodel

EUR 147.86 For Business Accounts Only

AT&T Pays Up For Time Warner as Wireless and Television Growth Remain Sluggish

We remain disappointed with AT&Tâ€™s capital allocation decisions. The firm plans to acquire Time Warner for $107.50 per share, a 35% premium to Time Warnerâ€™s share price before deal rumors surfaced and a 26% premium to our standalone fair value estimate for Time Warner. Based on our fair value estimate, AT&T is paying about $18 billion more for Time Warner than it is worth on a standalone basis, equal to $2.90 per AT&T share. AT&T will fund half of the purchase price with its shar...

24/10/2016 14 EN

Underlying

AT&T Inc.

AT&T is a holding company. Through its subsidiaries, the company is a provider of telecommunications, media and technology services. The company's Communications segment provides wireless and wireline telecom, video and broadband services. The company's WarnerMedia segment includes media and entertainment businesses that principally develop, produce and distribute feature films, television content, and other content globally; and operate digital media properties. The company's Latin America segment provides entertainment services in Latin America and wireless services in Mexico. The company's XANDR segment relies on using data from its customer relationships, to develop digital and video advertising that is relevant to consumers.

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US00206R1023 New York Stock Exchange United States

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Michael Hodel

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AT&T Pays Up For Time Warner as Wireless and Television Growth Remain Sluggish

SATS 1Q25 Quick Take: Wireless making progress (but not enough)

Winter for wireless 1Q25

Autumn for Broadband 1Q25

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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