In one of the biggest mergers in recent history, Dallas-based AT&T announced plans Saturday evening to acquire Time Warner Inc. for more than $85 billion.
"This is a perfect match of two companies with complementary strengths who can bring a fresh approach to how the media and communications industry works for customers, content creators, distributors and advertisers," AT&T Chairman and CEO Randall Stephenson said in a statement.
Bill Dendy, president of Elite Financial Management in Dallas, said the move will mean an evolution in how consumers receive content for entertainment.
Because wireless subscription sales have stagnated, Dendy said, it makes sense for AT&T to venture into a booming business.
But bigger doesn’t always mean better. The deal could result in driving out competition and potentially driving up prices.
“It is likely that this merger takes a year or longer to be worked out, if it gets worked out at all, because of those concerns that it could be negative for the consumer long-term,” Dendy said.
Marsha Hamilton has been an AT&T phone customer for years and said she’s run into billing issues so often that she feels the wireless company should stay focused.
“I think they’re swallowing up a bit too much, just as a consumer myself. Maybe it’ll help them on the business end, maybe they’re trying to expand their horizons, but I just don’t think it’s a good idea, personally,” said Hamilton.
But AT&T internet user Columbia Shafer said it could be a positive move for customers.
“I think there are enough small companies and other companies that there will still be choices. If they were the only two companies, then I might be worried. But because there are other ones, I think it’s alright,” Shafer said.
Earlier Saturday, Donald Trump promised to block the deal under his administration if he became president.
