AT&T is taking out a massive $40 billion loan to buy Time Warner
Getty Images/Justin Sullivan
AT&T announced late Saturday night that it has agreed a deal to buy Time Warner for $107.50 per share, with Time Warner shareholders getting $53.75 per share in cash and $53.75 per share in AT&T stock.
The deal values Time Warner at $85.4 billion, and makes for a massive payday for the Wall Street banks advising on the deal.
The cash portion of the deal is going to be financed with new debt and cash already on AT&T's balance sheet.
"AT&T has an 18-month commitment for an unsecured bridge term facility for $40 billion," the company said in a statement announcing the deal.
The statement added that AT&T expects to "maintain a strong balance sheet following the transaction close and is committed to maintaining strong investment-grade credit metrics."
"By the end of the first year after close, AT&T expects net debt to adjusted EBITDA to be in the 2.5x range," the statement said.
AT&T said it expects $1 billion in annual savings within three years of the deal closing, as a result of cutting corporate and procurement expenditures.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market