5 things to know today …
1. Does AT&T want to buy Time Warner? National news outlets are reporting that the two companies are discussing a merger and could announce an $85 billion deal as soon as Sunday. According to Reuters, this would be the biggest corporate merger announced this year.
Time Warner stock closed just below $90 per share on Friday, giving the company a current market value of just under $70 billion, or about 21% less than AT&T is reportedly prepared to pay. AT&T stock closed at $37.50, giving the company a current market value of $230 billion. If a deal materializes, AT&T is expected to finance it with cash and stock.
Time Warner’s media empire would give AT&T the content it wants to supply its many channels to deliver that content. The carrier has made it clear that it wants to own and create original programming, and CEO Randall Stephenson is said to be very focused on finding the right corporate partners.
Earlier this year, Charter Communications bought Time Warner Cable for $60 billion. Charter has rebranded Time Warner Cable under the name Spectrum.
2. Verizon Communications may try to renegotiate its $4.8 billion dollar deal to buy Yahoo’s internet business. The two companies had already come to an agreement when Yahoo disclosed a hack that compromised millions of email accounts. Now as Verizon faces slipping sales and higher customer churn, the carrier’s lawyers have started talking to Yahoo’s lawyers about the material impact of the data breach.
3. One bright spot for Verizon Wireless is its exclusive right to sell Google’s new Pixel phone, a device that consumers seem to love. The 128 GB Pixel XL is already sold out in Verizon stores, and the carrier is urging customers to get into stores soon if they want to get one of the other Pixel models. Verizon is offering the 128 GB Pixel XL for $870, or $36.24 per month, but it won’t ship until Nov. 18.
4. Samsung is said to be in talks with Korea’s LG Chem about supplying batteries for future Samsung smartphones. The device maker is still in the midst of a recall of roughly 1.9 million Galaxy Note 7 phablets. Note 7 owners reported overheating and in some cases explosions. Samsung blamed the batteries and started shipping new devices that it said would be safe, but several of those overheated as well. Now Samsung has halted production and sales of the Note 7.
5. The wireless industry will be paying close attention next week when NXP Semiconductor reports quarterly earnings, because the announcement may include news of a deal with Qualcomm. Qualcomm and NXP have reportedly been in merger talks for some time. NXP has a market value of almost $35 billion. The company purchased Freescale last year for about half that amount.
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