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Business

AT&T, Time Warner take merger mania to new heights

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Opening sequence

Business

AT&T, Time Warner take merger mania to new heights

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COMING UP:AT&T, Time Warner take merger mania to new heights

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Transcript

00:00:00
>> AT&T's $85 billion offer to buy Time Warner, the parent of well known media properties like HBO, CNN and the Warner Brothers movie studio, is historic, and it's not the only deal on the table this Monday. TD Ameritrade and TD Bank teaming up to buy Scottrade Financial for $4 billion, combining two of the biggest discount stock brokers in the US.
00:00:25
And aircraft part suppliers Rockwell Collins and BE Aerospace joining forces in a more than $6 billion tie up, all part of more than $100 billion in deals to kick off the week. CEOs are looking at the political calendar and are seeing a green light, says Reuters mergers and acquisitions correspondent Greg Roumeliotis.
00:00:45
>> We've had other big merger Mondays like this this year, but this merger Monday stands out because it's so close to the US presidential election. And what's happening is, CEOs in corporate America pretty much are assuming a Hillary Clinton win. But beyond that, I think a lot of people understand that political risk in the US is a little bit benign.
00:01:10
>> Even if Donald Trump pulls out a come from behind surprise win, CEOs don't think the regulatory landscape will change all that much. A Federal Reserve that's likely to start gradually raising interest rates in December may also be fueling this deal-making frenzy.>> People see a window. Money's not going to remain cheap for that long.
00:01:32
So if you're looking to do a big deal, you might as well do it now, when the financing markets are still very strong. The stock market has been welcoming in general to some of those deals.>> But Time Warner and AT&T getting a bit of the cold shoulder from investors on Monday.
00:01:50
Some are pricing in the chance, even if it's a slight one, that regulators could stand in the way of creating the next big media tie up.