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AT & T's Vertical Integration Merger

463 Words2 Pages

AT&T acquiring Time Warner is one of the most expensive deals in history. An acquisition in the business industry is when one company buys another company for cash or stock (Parnell, 2014). AT&T’s acquisition of Time Warner faced many objections from Congress and the President of the United States. In this stage of the purchase, AT&T displays vertical integration by acquiring Time Warner. Vertical integration has been an essential factor in developing most industries (Harrigan, 1984). AT&T’s leaders determined that by buying Time Warner, they could expand their goods and services and provide more offerings to their customers. Naturally, this merger provides a perfect match because it displays how the media and communication industries work for content providers and customers of AT&T (Solomon, 2016).
Furthermore, many critics believe this merger will not benefit the customers and shareholders of AT&T. In my opinion, the vertical integration merger will benefit many shareholders and customers because …show more content…

(2016, October 23). What AT&T's Over $80 Billion Takeover Of Time Warner Means For Media Stocks. Retrieved from https://www.forbes.com/sites/antoinegara/2016/10/22/what-atts-over-80-billion-takeover-of-time-warner-means-for-media-stocks/#55ca305054c1
Harrigan, K. R. (1984). Formulating Vertical Integration Strategies. Academy Of Management Review, 9(4), 638-652. doi:10.5465/AMR.1984.4277387
Parnell, J. A. (2014). Strategic management: Theory and practice (4th ed.). Los Angeles, CA: SAGE.
Solomon, B. (2016, October 24). AT&T, Time Warner Team Up To Fight For The Future Of TV. Retrieved from https://www.forbes.com/sites/briansolomon/2016/10/22/att-time-warner-team-up-to-fight-for-the-future-of-tv/#77d4b1b92cf4
Trainer, D. (2016, November 15). AT&T Time Warner Acquisition A Rare Deal That Makes Economic Sense. Retrieved from

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