By MICHAEL J. de la MERCED In the world of media, bigger remains better.<\/p>\n So in the wake of Comcast\u2019s $30 billion takeover of NBCUniversal and Verizon Communications\u2019 serial acquisitions of the Huffington Post and Yahoo, AT&T<\/a> has bought one of the remaining crown jewels of the entertainment industry.<\/p>\n The telecommunications giant agreed on Saturday to buy Time Warner<\/a>, the home of HBO and CNN, for about $85.4 billion, creating a new colossus capable of both producing content and distributing it to millions with wireless phones, broadband subscriptions and satellite TV connections.<\/p>\n The proposed deal is likely to spur yet more consolidation among media companies, which have already looked to partners to get bigger. This year, Lionsgate struck a deal to buy the pay-TV channel Starz for $4.4 billion<\/a>. And the Redstone family, which controls both CBS and Viacom, has urged the corporate siblings, which split 10 years ago, to consider reuniting<\/a>.<\/p>\n AT&T and Time Warner said both of their boards unanimously approved the deal.<\/p>\n \u201cWhen Jeff and I started talking, it became clear to us very quickly that we shared a very similar vision,\u201d Randall L. Stephenson, AT&T\u2019s chief executive, told reporters on a conference call on Saturday, referring to Jeffrey Bewkes, Time Warner\u2019s chief executive. \u201cTime Warner, we believe, is the clear leader in premium content.\u201d<\/p>\n Most analysts and investors have noted that Time Warner was part of one of the biggest merger follies of all time, when it sold itself to AOL at the height of the dot-com boom. That combination \u2014 also pitched on the idea of uniting content and the internet \u2014 proved unwieldy and was later stripped apart to a few core businesses.<\/p>\n<\/div>\n<\/div>\n This time, however, the rise of online outlets like Netflix, Amazon Prime and YouTube and the shift of younger customers from traditional media have pressured media companies to seek out consolidation partners. These media companies are anticipating drops in fees from cable service providers and declining revenue from advertisers. Getting bigger would give them more negotiating leverage with both service providers and with advertisers.<\/p>\n Among their top priorities is finding new ways of reaching consumers. HBO, for example, offers its HBO Now service to deliver shows like \u201cGame of Thrones\u201d and \u201cWestworld\u201d to consumers who do not have cable subscriptions.<\/p>\n Even Disney, widely seen as the strongest content company, with brands like Pixar, Marvel and Lucasfilm, has been grappling with how to overcome challenges facing its network channels. ESPN, which long served as a growth engine, is now facing declining ratings and subscriber erosion, putting advertising sales into question.<\/p>\n \u201cThe biggest thing that we\u2019re trying to do now is figure out what technology\u2019s role is in distributing the great content that we have,\u201d Robert A. Iger, Disney\u2019s chief executive, said at a presentation at Boston College on Oct. 5.<\/p>\n Comcast\u2019s takeover of NBC has proved a model for this new world of media deal-making. While the cable giant has occasionally been scrutinized for possible regulatory violations, NBCUniversal has generally thrived under its current ownership, with NBC enjoying a ratings comeback and Universal delivering a wide range of hit films, from blockbusters like \u201cJurassic World\u201d to dramas like \u201cStraight Outta Compton.\u201d<\/p>\n Still, Time Warner\u2019s deal with AT&T is likely to face tough scrutiny from government regulators increasingly skeptical of power being consolidated among a few titans. Donald J. Trump, the Republican nominee for president, indicated on Saturday that he would seek to block the merger if elected \u201cbecause it\u2019s too much concentration of power in the hands of too few.\u201d<\/p>\n Over the last decade, Time Warner has spent significant time selling or spinning off AOL, many of the Time Inc. stable of publications, and Time Warner Cable, which was sold to another cable operator. The remaining businesses are HBO, one of the most-admired pay-TV channels; Warner Bros. movie studios; and cable channels that include CNN, TNT, Turner Sports and TBS.<\/p>\n AT&T, once known informally as Ma Bell, is a storied American brand that goes back under a succession of names to the late 19th century, after Alexander Graham Bell invented the telephone.<\/p>\n<\/figcaption>
\nThe New York Times<\/span><\/span><\/p>\n![\"22db-timewarner1-master768\"](\"https:\/\/stateofthenation2012.com\/wp-content\/uploads\/2016\/10\/22db-timewarner1-master768.jpg\")
<\/a><\/p>\nTimeline<\/h3>\n
AT&T\u2019s History of Invention and Breakups<\/h2>\n
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