Morningstar - ATT Inc. (T) ATT Agrees to Acquire AppNexus to Enhance Its Ability to Offer Ads; Shares Undervalued

Report

Morningstar

Allan C. Nichols

AT&T Agrees to Acquire AppNexus to Enhance Its Ability to Offer Ads; Shares Undervalued

On June 25, AT&T announced it had reached a definitive agreement to acquire AppNexus. No price was given, but several news agencies report it was likely at least $1.6 billion. AppNexus claims it is the largest independent ad exchange (a marketplace for online ad buyers and sellers), but it is dwarfed by Googleâ€™s DoubleClick. This acquisition may enable AT&T to further monetize its viewers, users, and content via ads. Plus, with WarnerMedia, the firm now has more data regarding its custom...

25/06/2018 16 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

Allan C. Nichols

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AT&T Agrees to Acquire AppNexus to Enhance Its Ability to Offer Ads; Shares Undervalued

BEAD: Fiber slips further; FWA gains some ground

Coffee, Croissants & Credit/Aroundtown, AT&T, T-Mobile US

The EchoStar Deal: Impacts to AT&T

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

Sasol Provides Full-Year Production Update

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

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