Time Warner shareholders approve the merger
According to a Business Wire report, on February 15, 2017, in a meeting of Time Warner’s (TWX) shareholders, 99% of share votes approved the AT&T (T) merger proposal, while 78% of outstanding common shareholders voted in favor of the merger proposal. According to the report, Time Warner expects to close AT&T’s proposed acquisition by the end of this year.
The change in video consumption patterns is forcing many media companies, including Time Warner, to rethink their business strategies. As more Millennials watch videos across different platforms, including mobile and broadband, content distribution is also changing.
Changes in trends of content consumption and distribution
Many media companies are either launching their online television services with skinny bundles or customized subscription packages and more efficient targeted advertising.
As a result of this changing scenario, Time Warner’s CEO, Jeff Bewkes, who was present on AT&T’s 3Q16 earnings call, stated that he believed TWX’s acquisition by AT&T would enable the combined company to offer its content in a more effective way across different platforms and attract more viewers in the process.