ITV

Tag: Time Warner

  • Cartoon Network Digital mobile app ‘Anything’ to launch on 13 October

    Cartoon Network Digital mobile app ‘Anything’ to launch on 13 October

    BENGALURU: In probably a what it claims as a first for a television brand, Cartoon Network Digital (CND) announced the debut of a micro-network specifically designed for the small screen.  Cartoon Network Anything contains content exclusively created for portable mobile platforms, rapidly delivering entertainment in a totally new and fun way. The app is free and available for download now on the App Store and Google Play. Cartoon Network will celebrate the launch of Cartoon Network Anything starting at 7:30 a.m. ET/PT on 13 October.
     

    “We want our audience to have a holistic and unique experience that remains true to Cartoon Network’s DNA on every device,” said CND vice president Chris Waldron. “Cartoon Network Anything is a new kind of network – it’s undeniably the Cartoon Network brand, but specifically tailored for the smallest screens.”

     
    CND oversees the management and production of content for the channel’s official site, CartoonNetwork.com, and all of the network’s mobile properties. A top industry web site, CartoonNetwork.com is the #1 kids’ television network site and a Top 10 Domain with kids and boys 2-12 in the United States oversees the management and production of content for the channel’s official site, CartoonNetwork.com, and all of the network’s mobile properties. A top industry Web site, CartoonNetwork.com is the #1 kids’ television network site and a Top 10 Domain with kids and boys 2-12 in the United States claims a Time Warner release.

     

     
    Cartoon Network Anything is an ever-growing and ever-changing stream of content consisting of games, activities, trivia and video, each lasting an average of 10 to 15 seconds. After each piece of content, viewers can advance to the next piece by simply swiping their screens. The perpetually-updated stream of content is delivered randomly, providing entertainment that feels both immediate and infinite, informs the company.

     

     
    Soon after launch, Cartoon Network Anything will premiere original IP from Cartoon Network Studios, giving an exciting first-look at new animated micro episodes created specifically for this experience. Fans will be able to save items to their favourites for future viewing, and the ‘like’ functionality may also inform future development by gauging fan interest about a particular piece of content, the company adds.
     

     

  • NBA to receive $ 24 billion over 9 years from Walt Disney, Time Warner

    NBA to receive $ 24 billion over 9 years from Walt Disney, Time Warner

    BENGALURU: The National Basketball Association, USA (NBA) is likely to receive $ 24 billion (about Rs 1,47,000 crore) from Time Warner’s TNT and Disney’s ESPN and APC Networks in a renewed contract over 9 years according to a Bloomberg report. The channels will carry NBA games through 2024-25, paying almost triple the amount for the contract that is set to expire in 2015-16. According to Bloomberg, the channels pay a combined USD 930 million (approximately Rs 5700 crore) a year to the NBA.

     

    According to an NBA press release, the agreements were announced on 6 October, by NBA Commissioner Adam Silver; Washington Wizards owner Ted Leonsis, chairman of the NBA’s Media Committee; Turner Broadcasting System President David Levy; and ESPN President and Disney Media Networks Co-Chairman John Skipper. The NBA’s current eight-year deals with ABC/ESPN and TNT expire at the end of the 2015-16 season.

     

    “The Walt Disney Company and Turner Broadcasting share responsibility for the growing popularity and interest the NBA enjoys, and we are thrilled to extend our partnerships,” said Silver. “With these new agreements, our fans will continue to benefit from the outstanding NBA coverage and programming provided by ABC, ESPN, TNT, NBA TV and their digital platforms.”

     

    “These nine-year extensions with Disney and Turner recognise the extraordinary value of live premium sports,” said Leonsis. “On behalf of our Media Committee and the other team owners, we thank Disney and Turner for their commitment to the NBA and its fans.”

     

    “This is a significant deal for our company and we are pleased to continue our long-standing partnership with the NBA, its fans, owners and players,” said Levy. “The agreement locks in some of the most valuable, original, premium live sports programming that we’ll continue to monetise across TNT and all other platforms within our extensive portfolio and will help further grow our businesses into the next decade.”

     

    “The NBA has never been more popular globally and it continues to grow under Adam’s leadership,” said Skipper. “By acquiring significantly more NBA content on both existing and yet-to-be created platforms, we will establish a vibrant year-round relationship with the NBA and bolster what is already the sports industry’s most impressive and impactful collection of media rights.”

     

    Under the agreements, the partners will televise more national regular-season games (ABC/ESPN: 100; Turner: 64) and will continue to do so generally on Wednesdays (ESPN), Thursdays (TNT), Fridays (ESPN), and Sundays (ABC/ESPN). By the end of these new agreements, the NBA’s partnership will reach 41 years with Turner, while the league’s relationship with ABC/ESPN will extend to 23 years. Additionally, NBA TV’s Sunday, Monday, Tuesday and Saturday game telecasts will continue to fill out the schedule, ensuring a full week of nationally televised games. The NBA’s 24-hour network will present over 100 regular-season games each year.

     

    The NBA release says further that the NBA and Turner will also continue their groundbreaking partnership to manage jointly the NBA’s digital assets including NBA TV, NBA.com, NBA Mobile, NBA LEAGUE PASS, and WNBA.com, which Turner operates out of its Atlanta production facility. TNT will also debut the first-ever NBA Awards Show, an annual event which will air at the end of the season, and will have expanded activation opportunities surrounding key NBA pillars such as Opening Night and NBA All-Star Week.

     

    Under the agreement, ESPN will be granted enhanced digital rights to provide NBA content for multiple ESPN platforms, including ESPN.com and WatchESPN.

     

    The parties have also established a framework for ESPN and the NBA to negotiate the launch of a new over-the-top offering in which the league would receive an equity interest. Details for the new offering will be announced at a future date.

     

    Under a new deal with the WNBA, games will continue to be televised on ABC and ESPN/ESPN2 through the 2025 season. ESPN also will have enhanced in-progress highlight rights for the WNBA on digital and linear platforms.

     

    Beginning with the 2016-17 season, for the first time, at least 20 NBA Development League games and NBA Summer League games will be seen on the ESPN television networks.

     

    Turner Sports will have enhanced content/digital rights to NBA content for multiple TNT platforms including Bleacher Report; interactive online elements such as selected camera angles, statistic feeds and video to complement TNT’s telecasts; and broadband and other content for digital platforms, including highlights and studio shows. This includes the opportunity to develop and distribute new NBA content and programming for Bleacher Report, as well as rights to highlights for incorporation into the brand’s popular team and topic-centric Team Stream Now video offerings.

  • Turner, HBO boost Time-Warner revenues in Q2

    Turner, HBO boost Time-Warner revenues in Q2

    BENGALURU: Time -Warner Inc (Time-Warner) reported three per cent y-o-y growth in revenue in the quarter ended 30 June 2014 (Q2 of 2014, or the current quarter) to $6.8 billion. The company’s adjusted operating revenue grew 17 per cent to $1.6 billion.

     

    Turner, Home Box Office (HBO) and Warner Bros segments contribute to Time Warner’s numbers.  Revenues were boosted y-o-y by Turner and (HBO) by 9.5 per cent and 16.5 per cent respectively, while Warner Bros showed a 2.4 per cent y-o-y de-growth in the current quarter.

     

    Turner results

     

    Turner reported revenue of $2,750 million in the current quarter as compared to $2,627 million in the corresponding quarter of last year. Turner’s subscription revenue grew 8.7 per cent y-o-y to $1,323 million in the current quarter from $ 1,217 million in the quarter ended 30 June 2013 (year ago quarter), while its advertising (ad) revenue grew 27 per cent in the current quarter to $1,284 million from the year ago quarter’s $1011 million. Turner’s content revenue in the current quarter grew 25.4 2 per cent to $89 million from the year ago quarter’s $71 million. The segment reported 15.3 per cent in adjusted operating revenue in the current quarter to $940 million, as compared to the year ago quarter’s $815 million.

     

     HBO results

     

    HBO’s revenue in the current quarter grew to $1,417 million from $1,216 million in the year ago quarter.  Its subscription revenue grew 9.7 per cent in the current quarter to $1,411 million from $1,040 in the year ago quarter. The segment’s content revenue grew 55.6 per cent to $274 million from $176 million in the year ago quarter. HBO’s adjusted operating revenue in the current quarter grew 22.7 per cent to $552 million from $450 million reported for the year ago quarter.

     

    Warner Bros

     

    Warner Bros revenue fell 2.4 per cent to $2,870 million in the current quarter from the year ago quarter’s $ 2941 million. Warner Bros theatrical product reported 5.5 per cent lower revenue at $1,494 million in the current quarter as compared to the $1,581 million reported for the year ago quarter. The segment’s television product grew by 5.9 per cent in the current quarter to $1,052 million as compared to the year ago quarter’s $993 million.

     

    Y-o-y, Warner Bros current quarter’s content revenue shrank 2.3 per cent to $2,731 million from $2,795 reported during the year ago quarter. Warner Bros advertising and subscription revenues were almost flat at $19 million and $33 million, respectively, in the current quarter as compared to the year ago quarter’s $18 million and $32 million, respectively.

     

    Time Warner completed the Time Warner cable spinoff last month and says it has repurchased 51 million shares for $3.5 billion year-to-date through 1 August 2014. The Time Warner board has authorised an additional $5 billion of share repurchases.

     

    Time Warner chairman and CEO Jeff Bewkes said, “We are off to a very strong start in 2014, with results that demonstrate both the returns we can achieve on our investments in great storytelling and the growth potential of our businesses. Excluding Time Inc., which we expect to spin off as an independent publicly-traded company this quarter, we grew first quarter Revenues by 10%, Adjusted Operating Income by 12 per cent, and Adjusted EPS by 26 per cent. In the first quarter, Warner Bros. picked up where it left off after a record-breaking year in 2013, with The LEGO Movie launching yet another franchise for us and leading all releases at the domestic box office. Combined with its promising slate of movies for the rest of the year and strong lineup of TV shows to be unveiled at the upfronts, Warner Bros. is positioned to have another excellent year in 2014. Home Box Office continues to be red hot, led by the debut of True Detective, the most-watched freshman series in HBO’s history. And the Season 4 premiere of Game of Thrones on April 6 drew HBO’s largest audience since The Sopranos finale. Turner also made history by bringing the NCAA Men’s Basketball Final Four to cable for the first time ever. The success of the NCAA Tournament also helped TBS maintain its position as ad-supported cable’s #1 network in primetime among adults 18-34 and 18-49. It also showcased the importance and vibrancy of our TV Everywhere initiatives, with a more than 40 per cent increase in streams for our March Madness Live service over last year. Another standout at Turner was Adult Swim, which again finished the quarter as the #1 ad-supported cable network in total day for Adults 18-34. And CNN reaffirmed that it is the place the world goes for authoritative coverage during major news events, with delivery in its key demographic up over 50 per cent in March. Further demonstrating our commitment to shareholder returns, during the quarter we returned almost $1.3 billion to our shareholders in the form of share buybacks and dividends.”

  • Fox withdraws Time-Warner acquisition bid

    Fox withdraws Time-Warner acquisition bid

    BENGALURU:  Twenty-First Century Fox (Fox) withdrew its proposal to acquire Time Warner Inc.  Excerpts of the Fox press release – chairman and CEO Rupert Murdoch commented: “We viewed a combination with Time Warner as a unique opportunity to bring together two great companies, each with celebrated content and brands.  Our proposal had significant strategic merit and compelling financial rationale and our approach had always been friendly.  However, Time Warner management and its Board refused to engage with us to explore an offer which was highly compelling. Additionally, the reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders.  These factors, coupled with our commitment to be both disciplined in our approach to the combination and focused on delivering value for the Fox shareholders, has led us to withdraw our offer.”

     

    “21st Century Fox’s future has never been brighter.  The strength of our leading franchises, combined with the power of our emerging growth businesses and the leadership positions of our international enterprises put us on a path for even greater success.”

     

    The Board today authorised a USD 6 billion share repurchase programme. The repurchase of an additional USD 6 billion of Class A Common Stock is expected to be completed in the next 12 months. 

     

    Murdoch continued, “This significant return of capital underscores the Company’s ongoing commitment to disciplined capital allocation and returning value to shareholders in a meaningful way.”

     

    Time Warner responded with a press release. Excerpts of Time Warner’s statement regarding the announcement by Twenty-First Century Fox that it has withdrawn its proposal to acquire all of the outstanding shares of Time Warner.

     

    “Time Warner’s Board and management team are committed to enhancing long-term value and we look forward to continuing to deliver substantial and sustainable returns for all stockholders.  Time Warner is well positioned for success with our iconic assets, including the world’s leading premium television brand, the world’s strongest ad-supported cable network group, and the world’s largest film and television studio.  We thank our stockholders for their continued support. Citigroup Global Markets Inc. is acting as financial advisor to Time Warner. Cravath, Swaine & Moore LLP is acting as legal advisor to Time Warner.”

  • Fox moves to garner funds; Fox or Time Warner, who will blink first?

    Fox moves to garner funds; Fox or Time Warner, who will blink first?

    BENGALURU: It was a deal, the possibility of which they had announced in May 2014. The media pundits said that it was inevitable, now that Rupert Murdoch’s 21st Century Fox (Fox) bid to buy out Time Warner had been rejected by the latter in mid-July 2014.  Fox needed to sweeten the offer with a higher bid and with the proceeds from the BSkyB deal, the company would not have to go in for a very big addition to its debt.

     

    Fox has gone ahead and done just that. Last week on Friday, Fox through a press release announced that it will transfer Sky Italia and its 57.4 per cent interest in Sky Deutschland to BSkyB to create a pan-European digital television leader through the combination of these assets.

     

    The release said further: ‘In exchange for the transfer, 21st Century Fox will receive approximately $ 9.3 billion in value from BSkyB comprised of approximately $ 8.6 billion in cash and BSkyB’s 21 per cent interest in National Geographic Channels International, raising 21st Century Fox’s ownership stake to 73 per cent. In addition, 21st Century Fox will participate in BSkyB’s announced equity offering by purchasing approximately $ 900 million of additional shares in BSkyB to maintain the Company’s 39.1 per cent ownership interest. The net, after-tax cash proceeds to be received by 21st Century Fox upon completion of all the elements of this transaction will approximate $ 7.2 billion. The agreement is subject to regulatory approvals, the approval of BSkyB stockholders and customary closing conditions.’

     

    Confirming the deal, in a message to his staff, Sky CEO Jeremy Darroch said, “The three companies complement each other well. We all operate businesses that look similar and offer similar products, and of course we share the same brand. But our affiliation goes deeper than that. We may work in different countries, but our corporate culture and values are familiar. Our teams know each other well and have a history of working together. So I am confident that this is a combination that will work well.” Darroch added, “We expect this process to take several months to complete.”

     

    So far Fox has chosen not to directly comment about the rejection of its bid or move by the Time Warner board that would stymie any action by 15 per cent or more of Time Warner’s shareholders that could favour bids by Fox and force Time Warner to consider being taken over. Fox has not commented on the Writers Guild of America, West (WGAW) speaking against any agglomeration of media companies and more specifically the WGAW’s opposition to Fox’s proposal for taking over Time Warner.

     

    However, in an oblique statement, the Fox release quotes its chairman and CEO, the 83 year old Rupert Murdoch as saying, “Our renewed authorisation for our share buyback program will be executed regardless of any potential acquisition or investment activity by the company. 21st Century Fox’s number one priority is increasing shareholder value in a disciplined manner and as a result, we will only consider transactions that fully support this objective.”

     

    Bloomberg reported on Saturday that Fox  is open to giving Time Warner shareholders seats on the board of the combined company should its $ 75 billion takeover bid succeed, attributing this to people familiar with the situation. Media reports suggest that the offer for board representation could appear in a revised proposal and that one of the reasons for Time Warner’s rejection of Fox’s overtures is that its shareholders are being offered non-voting shares by Fox.

     

    So it is more of a question of ‘when’ and not ‘if’ a fresh proposal is made by Fox. We should hear soon more about the Fox –Time Warner takeover/merger saga that will take two to three years to consummate, if it happens.

  • Fox or Time Warner, who will blink first? Time Warner changes bylaws

    Fox or Time Warner, who will blink first? Time Warner changes bylaws

    BENGALURU: Reports fly thick and fast, some speculation, some part truth across the global media about the aftermath of Time Warner’s rejection of Twenty First Century Fox (Fox) unsolicited merger bid. What will the 83 year old tough as nails Fox ‘patriarch’ Rupert Murdoch do next? Known for his bulldogged tenacity once he sets his sights on a company, what and when (and not will it) will Fox up the ante to a reportedly manageable USD105 per share.

     

    Time Warner has in the meantime initiated evasive action to thwart attacks on its soft underbelly by eliminating a provision in its bylaws that earlier could let just 15 per cent of its shareholders call special meeting, so as to prevent it being forced to consider the Fox offer in case Fox resorts to this measure to force the issue. The bylaws now say that the CEO or a majority of the board can call a special meeting.

     

    There is a quiet buzz of Time Warner’s CEO Jeff Bewkes alleged animosity towards Murdoch and his hierarchical management bent. Under expert hatchet man Bewekes leadership, Time Warner has chopped the unwieldy behemoth created by the largest media deal ever by the AOL-Time Warner merger in 2000-01, and has delivered a total shareholder return of more than 150 per cent since 2008, almost tripling the return of the S&P 500 over the same period.

     

    Speculation is rife about Fox paring off its wholly-owned Sky Italia unit and its 57 per cent stake in Sky Deutschland AG to British Sky Broadcasting Group Plc., within the next two weeks for about USD 13 billion. US banks JPMorgan & Chase Company and Goldman Sachs Group Inc., will probably help Murdoch finance the bid say pundits. Fox and the British Sky Broadcasting Group had disclosed their talks about a possible transaction in May this year.

     

    For now, Fox’s bid has probably kept at bay bids from Time Warner’s suitors such as Google among others, unless of course, Google/others can better the approximate USD85 per share offer made by Fox.

  • Fox or Time Warner: Who will blink first – Time Warner’s attempt to get more money?

    Fox or Time Warner: Who will blink first – Time Warner’s attempt to get more money?

    BENGALURU: Both the companies have issued official statements about the offer and rejection. Twenty-first Century Fox (Fox) issued a short, cryptic  three sentence statement –“21st Century Fox can confirm that we made a formal proposal to Time Warner last month to combine the two companies. The Time Warner Board of Directors declined to pursue our proposal. We are not currently in any discussions with Time Warner.” Fox waited for the appropriate time and made the bid within a few days of Time Warner completing the spinoff of Time Inc., and hence made the target more affordable for Fox.

     

    Speculation continues across media circles globally with some industry pundits claiming that the rejection of the Fox offer was a coy attempt by the Time Warner brass to get more money for the company. Time Warner shares closed last week at above USD 86 per share, already above the estimated USD 85 per share offered by Fox. If Fox wants to build more clout with Pay TV providers it actually is left with little option except to raise its bid, considering the fact that AT&T has announced a USD 49 billion deal to buy DirecTV and the friendly Comcast-Time Warner Cable merger is awaiting approvals. Other suitors could also make a pitch for Time Warner, hence raising the ante further.

     

    As mentioned earlier, Time-Warner had rejected Rupert Murdoch’s 21st Century Fox offer allegedly worth about USD 76 billion cash and stock. 21st Century Fox had offered to buy Time Warner for USD 32.42 in cash and offered a ratio of 1.531 Fox class-A share for each Time Warner share.

     

    Time Warner had in a statement last week said that the company was confident that its board’s strategy continues to deliver stockholder value and was superior to any proposal Fox had to offer.

     

    Excerpts of the Time Warner release:

     

     In making its determination, the Time Warner Board considered, among other things, that: The execution of Time Warner’s strategic plan will continue to drive significant and sustainable value for Time Warner stockholders; The unique value of Time Warner’s industry-leading businesses including its portfolio of networks and its film studio and television production business is only going to increase; There is significant risk and uncertainty as to the valuation of Twenty-First Century Fox’s non-voting stock and Twenty-First Century Fox’s ability to govern and manage a combination of the size and scale of Twenty-First Century Fox and Time Warner; and there are considerable strategic, operational, and regulatory risks to executing a combination with Twenty-First Century Fox.

     

    Citigroup Global Markets Inc. is acting as financial advisor to Time Warner while Cravath, Swaine & Moore LLP is acting as legal advisor.

     

     In the meantime, the US Federal Communications Commission (FCC) has set a deadline of 25 August 2014 for those interested in filing comments or petitions to deny the friendly Comcast Corporation (Comcast)-Time Warner Cable Inc., merger. (Time Warner Cable was spun off from Time Warner in 2009). The deal would give Comcast 30 million U.S. homes; about 30 per cent of all the cable households and 40 per cent of the high-speed internet market. In a statement in February 2014, Comcast had said that the stock-for-stock transaction in which Comcast will acquire 100 per cent of Time Warner Cable’s 284.9 million shares outstanding for shares of Comcast amounting to approximately USD 45.2 billion in equity value. Each Time Warner Cable share will be exchanged for 2.875 shares of Comcast, equal to Time Warner Cable shareholders owning approximately 23 per cent of Comcast’s common stock, with a value to Time Warner Cable shareholders of approximately $158.82 per share based on the last closing price of Comcast shares. Comcast also plans to expand its buyback program by an additional USD10 billion.

  • Fox or Time Warner, who will blink first?

    Fox or Time Warner, who will blink first?

    BENGALURU: If it had gone through, it would have been the second largest media deal ever in the history and created a mega media powerhouse, but Time-Warner rejected Rupert Murdoch’s 21st Century Fox offer allegedly worth about USD 76 billion cash and stock. Time Warner CEO Jeff Bewkes said that its board had decided such a deal would not be in the ‘best interests’ of his company or its shareholders. 

     

     Industry experts however expect Murdoch to make an improved offer, considering the fact that the media landscape is undergoing huge shifts. Murdoch has to gain scale as Pay TV distributors such as AT&T and Comcast are getting bigger and bigger through acquisitions, also Murdoch — is not known for backing off once he has set his sights on a company.

     

    21st Century Fox had offered to buy Time Warner for USD 32.42 in cash and offered a ratio of 1.531 Fox class-A share for each Time Warner share. That, says Fox Business, a 21st Century property, equates to around USD 86 a share, or USD 76 billion. The combined company would sport revenues of USD 65 billion, and control a slew of television channels like Fox, TNT, and HBO, along with movie studios 20th Century Fox and Warner Bros.

     

    Over the past few years, Time Warner has shorn off non-core business such as cable, internet and publishing and comprises a group of television and movie companies and has seen its stock price triple over the last five years.

     

    Last month on completing the spin-off of Time Inc., Bewkes said: “The spin-off of Time Inc. completes the process we began several years ago to position Time Warner as the world’s leading video content company.  Our strategy reflects our commitment to delivering strong returns to our shareholders as we light up the world with the best storytelling.  The spin-off gives Time Warner even more focus as we continue to deliver on this strategy.”

     

    A few days before the Time Inc., spinoff, as part of the studio’s television growth strategy, Times Warner subsidiary Warner Bros. Television Group (WBTVG) had announced that, following receipt of regulatory approvals, it had completed its acquisition of all Eyeworks’ businesses outside the US, in 15 countries across Europe, South America, Australia and New Zealand, adding 13 new territories to its international network of production companies. The company said that the Eyework acquisition further strengthened Warner Bros.’ international television production capabilities and sees Warner Bros. take over all of Eyeworks’ international distribution activities for both formats and finished product.

     

    The largest media deal so far was the Time Warner-AOL merger in 2000-01 worth USD 164 billion and was once considered as one of the biggest ‘mistakes’ in corporate history by Bewkes.

     

  • AT&T to buy DirecTV for $48.5 billion

    AT&T to buy DirecTV for $48.5 billion

    NEW DELHI: The American telecom giant AT&T has decided to take over pay TV brand DirecTV for $48.5 billion, but will sell its 73 million publicly listed shares from America Movil in Latin America considering the strong presence DirecTV has in the video market there.

     

    Combined the company would have roughly 26 million video subscribers, most from the DirecTV side, and a broadband network covering 70 million customer locations. 

     

    “This is an unique opportunity that will redefine the video entertainment industry and create a company that is able to offer new bundles and deliver content to consumers across multiple screens – mobile devices, TVs, laptops, cars and even airplanes,” said AT&T’s chairman and CEO Randall Stephenson in a statement.

     

    Meanwhile, the regulator is examining the three-month old proposal by Comcast Corp for a $45 billion takeover of Time Warner.

     

    AT&T will not pay any fee to DirecTV if they do not get approval from the regulator.

    Following the deal, the telecom giant will expand high-speed broadband to 15 million customer locations, primarily in rural areas, in four years.

     

    AT&T will acquire DirecTV in a stock-and-cash transaction for $95 per share based on last Friday closing price. DirecTV shareholders will own around 14.5 to 15.8 per cent of AT&T shares. AT&T expects cost synergies to exceed $1.6 billion on an annual run rate basis by three years after closing.

     

    DirecTV has 20.3 million American subscribers, while AT&T serves 5.6 million video customers connected to its U-Verse network. But DirecTV’s subscriber growth has slowed in recent months as it does not have a landline network to deliver high-speed internet services to homes, unlike phone and cable TV companies.

     

    The deal will assist DirecTV to take on the combined entity between Comcast and Time Warner Cable. If combined, AT&T-DirecTV would serve roughly 26 million pay-TV customers. That would be less than the 30 million Comcast would have if regulators approve its purchase of Time Warner Cable.

     

    The transaction enables the combined company to offer consumer bundles that include video, high-speed broadband and mobile services using all of its sales channels — AT&T’s 2,300 retail stores and thousands of authorised dealers and agents of both companies, an AT&T spokesperson said.

     

    For customers who only want a broadband service and may choose to use video through an over-the-top (OTT) service like Netflix or Hulu, the combined company will offer stand-alone wireline broadband service at speeds of at least 6 Mbps (where feasible) in areas where AT&T offers wireline IP broadband service at guaranteed prices for three years.

     

    AT&T will continue to offer DirecTV service on a stand-alone basis at nationwide package prices for at least three years after closing.

     

    In 2015, AT&T will bid at least $9 billion provided there is sufficient spectrum available in the auction to provide AT&T a viable path to at least a 2×10 MHz nationwide spectrum footprint. 

     

  • TNT bags premier rights to The Hobbit: The Desolation of Smaug

    TNT bags premier rights to The Hobbit: The Desolation of Smaug

    MUMBAI: Time Warner’s Turner Broadcasting System has bagged the television rights to The Hobbit: The Desolation of Smaug. TNT already has rights to Peter Jackson’s first Hobbit, from New Line and MGM. The movie will premier on TNT in 2016, while the 2012 release The Hobbit: An Unexpected Journey will be aired in 2015.

     

    The Hobbit: The Desolation of Smaug was acquired by TNT post its huge box office success. Reports suggest that the movie has bagged more than $400 million in worldwide BO and $ 127.5 million domestically, since its release earlier this month.

     

    TNT had first ventured into Tolkien’s Middle Earth with its network television premiere of The Lord of the Rings: The Fellowship of the Ring in 2004. Since then the network has been acquiring movies like The Lord of the Rings: The Two Towers in 2005 and The Lord of the Rings: The Return of the King in 2006.

     

    TNT, TBS and Turner Classic Movies president, head of programming Michael Wright said in a release, “TNT has been the primary television home to Tolkien’s Middle Earth for nearly a decade, beginning with our network television premieres of The Lord of the Rings trilogy. We’re proud to continue our association with these extraordinary and enormously popular epics with the acquisition of The Hobbit: The Desolation of Smaug.”