Moffett Nathanson’s Craig Moffett stated that the Time Warner deal will at least initially be a positive income statement for AT&T. However, he thinks that it is going to be a negative drain on the company’s balance sheet.
Media Business Trends
Consumers are increasingly choosing to pay for streaming media instead of watching live, ad-driven TV. To compete in the changing market, larger companies are having to change how they do business. That includes buying up complementary businesses and combining with their competition.
It also means capitalizing on major properties. When Disney bought Marvel and Star Wars, they were able to create successful movies and television programs. Consumers demanded the new offerings and were happy to pay for them. But without the resources of Disney behind the projects, they might never happened.
What will the deal between AT&T and Time Warner bring us? What fruit will a deal between Comcast and Fox produce?
Questions from the American People:
- Will fewer big companies mean more streamlined media? What will the deal between AT&T and Time Warner bring us? What fruit will a deal between Comcast and Fox produce?
- How will these deals affect pricing for television and internet service? How will it affect streaming choices and pricing?
