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Liking the fees so far
It's all about the future distribution of tv , makes perfect sense
So did solarcity and tesla, but yes think of the fees
Makes perfect sense. At&t is the distributor, TW the content. The changing environment of how people consume media is causing a disruption to age-old business models. Its akin to the Comcast-NBC Universal tie up.
Correct, at&t can't block competition but that's not really the goal. Content is king these days, more than ever. The distributors are worried that the balance of power is shifting further and further away from them. For distributors, its all about eyeballs. That's what drives the ad dollars. "Easily license out the content"?Have you noticed that when the contracts between content providers and distributors are up, the renewal negotiations have been getting more and more contentious? It's because of the shift in where the eyeballs are. And where they're headed. Someone would try to buy Disney if they could, but they're too big.
On record, Disney has stated that they would be the buyer , not be bought. They are big enough and have the content to supply. However , from a business model perspective, they don't have a means of distribution and hence would look to buy a streaming service with expertise i.e. Hulu
^^ Time Warner is not in the distribution business, this makes no sense. They are clearly a content provider.
But is the content really worth $80+ BN dollars? Based on the antitrust laws, AT&T can't block the competition from obtaining TWC content & AT&T could have easily license out the content. I'm not saying that the deal doesn't add value to AT&T but it could've achieved the same result for less.