Art of the Deal
This is the massive total price tag AT&T agreed to pay for Time Warner's equity.
What is $85.4 billion?
This finance term measures how much a stock moves compared to the rest of the market.
What is Beta?
AT&T’s CEO argued that combining these companies would drive "more and better choices" for these people.
Who are Consumers?
Before it was a media giant, Time Inc. was founded by two Yale schoolmates to publish this first weekly news magazine.
What is Time Magazine?
This network, famous for Game of Thrones and The Sopranos, was part of the deal.
What is HBO?
This is the name for the type of merger where a distributor buys a content creator .
What is a Vertical Merger?
This is the "forever" growth rate used to calculate Time Warner's value at the end of the DCF model.
What is the Terminal Growth Rate?
This term describes the strategy of selling content, high-speed internet, and wireless services together to improve customer retention.
What is Bundling?
There were this many original "Warner Brothers" who started the famous movie studio in 1923.
What is Four?
Before its current Dallas headquarters, the company's origins date back to 1880 with the invention of the telephone by this man.
Who is Alexander Graham Bell?
To pay for the deal, AT&T planned to take out $40 billion in loans from these two famous big banks.
Who are JPMorgan and Bank of America?
The offer price of $107.50 represented this percentage "premium" over Time Warner's pre-announcement price of $79.50.
What is 35%?
This consumer trend of cancelling cable TV subscriptions was a major reason AT&T needed new content.
What is Cord-Cutting?
AT&T is an abbreviation that originally stood for this three-word name.
What is American Telephone and Telegraph?
Time Warner’s "Turner" segment includes this first-ever 24-hour news network.
What is CNN?
If the government blocked the deal, AT&T had to pay Time Warner this $500 million "parting gift."
What is a Breakup Fee?
The deal value was approximately this many "times" Time Warner's EBITDA, a record for the media industry at the time.
What is 13x?
These are 2 of the key drivers in this case.
What is content synergy, competitive leverage, direct-to-consumer pivot, and ad-targeting data? (2 of these)
The Warner brothers formally started their studio in this year.
What is 1923?
In 2014, Time Warner rejected an $80 billion offer to be bought by this rival media giant.
Who is 21st Century Fox?
If AT&T's stock price fell below $37.411, Time Warner shareholders would receive this many AT&T shares for every one share they owned.
What is 1.437?
This was the Risk-Free Rate used for the WACC calculation, based on the Long-Term Government Bond Yield.
What is 2.31%?
Critics mocked the deal by citing a "failed" $160 billion merger between Time Warner and this internet company in 2000.
Who is AOL?
Time Warner merged with this company in 1996, then the largest cable television provider, to lead in distribution.
What is Turner Broadcasting System Inc.?
Warner Bros. studio was originally founded in 1918 on this famous Hollywood boulevard.
What is Sunset Boulevard?