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The $85.4 Billion Merger of AT&T and Time Warner: Valuation Analysis (Simplified Chinese Version)

Xiaokang Zhao; Zhichuan (Frank) Li;

商品編號:9B19NC022
出版日期:2019/11/26
再版日期:2020/04/21
商品來源:
商品主題:Finance
商品類型:Case (Pub Mat)
涵蓋議題:discounted cash flow;mergers and acquisitions;valuation;weighted average cost of capital
難易度:4 - Undergraduate/MBA
內容長度:12 頁
地域:United States
產業:Information; Media & Telecommunications;
事件年度:2016

On October 22, 2016, U.S. telecom operator AT&T Inc. and television media giant Time Warner Group announced that AT&T Inc. would acquire Time Warner Group for $107.50 per share, using half cash and half stock, to a total equity value of $85.4 billion. Although the chief executive officers from both companies were very confident about the future prospects for their shareholders once the transaction was approved and completed, there was much controversy surrounding the acquisition. A portfolio manager with a significant portion of her investment portfolios tied up in AT&T Inc. equity wondered if the price was fair. She needed to make a thorough valuation analysis to ensure that she could anticipate the future value of the merged firm and mitigate any possible loss in value for her investors.

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