AT&T Inc will run its wireless and DirecTV satellite television businesses separately from Time Warner’s media assets following its $85.4 billion (roughly Rs. 5,71,318 crores) acquisition of the entertainment group, a source told Reuters on Friday.
Buying Time Warner gives AT&T control of cable TV channels HBO and CNN, film studio Warner Bros and other coveted media assets. AT&T’s post-merger plans were earlier reported by Bloomberg News.
The deal, announced in October, is seen as a bold move by the telecommunications giant to acquire content to stream over its network. AT&T hopes the programming will give it a competitive edge in a saturated wireless market. The deal also brings a wealth of user data for more targeted advertising.
The reorganization will leave AT&T executives in charge of the combined company. John Stankey, who currently leads DirecTV and other entertainment businesses, will head up the media division and John Donovan, AT&T’s chief strategy officer who oversees technology and operations, will run the wireless business, the source said.
AT&T Chief Executive Officer Randall Stephenson will remain chairman and CEO of the combined company after the deal closes, an AT&T spokesman said.
In an emailed statement, AT&T spokesman Fletcher Cook said no decisions on an organizational structure have been finalized and that Stephenson and Time Warner CEO Jeff Bewkes were still working on them. Time Warner did not immediately respond to a request for comment.
Bob Quinn, AT&T senior executive vice president of external and legislative affairs, told reporters this week that the company expects to close the merger by the…