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AT&T deal could spark other deals

Thursday, October 27, 2016 - 01:23

Media companies are on the prowl for a wireless partner following AT&T's proposed $85 billion takeover of Time Warner. Conway Gittens reports.

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The historic AT&T and Time Warner merger agreement is almost certain to spark a new wave of mergers between telecom and media. The name most talked about as a buyout candidate: T-Mobile, says Reuters telecom reporter Malathi Nayak. SOUNDBITE: MALATHI NAYAK, REPORTERS, REUTERS, (ENGLISH) SAYING: "It seems like a lot of cable TV companies or perhaps a media company that are looking for a wireless element in their business can look at T-Mobile, because T-Mobile right now has a strong balance sheet, it has a fast growing business. It is basically gaining share and gaining subscriber growth from bigger rivals from Verizon and AT&T." Besides boasting 69 million total customers, T-Mobile also has a widespread national mobile network that would fit perfectly with a diversified media company. Analysts say a buyer that makes sense: Comcast. SOUNDBITE: MALATHI NAYAK, REPORTERS, REUTERS, (ENGLISH) SAYING: "If you look at Comcast, which is a cable provider, it has all this wonderful entertainment from NBC, if it perhaps has a wireless network through which it could provide over-the-top mobile video services. That could be something that could really be a good part to add to their business." But trying to get regulatory approval for another huge Comcast purchase after NBC Universal, could be a Herculean effort.

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AT&T deal could spark other deals

Thursday, October 27, 2016 - 01:23