>> There's a new player on the media scene and it goes by three initials. AT&T. The telecom giant agreeing to scoop up media conglomerate Time Warner for $80 Billion. Reuters media correspondent Jessica Tuntle sees a clear reason for why AT&T Is getting into the business.>> At&t has the distribution.
Having the content is, content is king, as they say. At&t has been ramping up its content acquisitions. They bought DirectTV, which was their last very big deal. All the telecom companies wanna get more into content, because you know, the pipes are kind of- the distribution pipes are a commodity.
>> This deal puts the cable world's crown jewel HBO as well as CNN, Warner Brothers Studios and other highly coveted media properties into the hands of AT&T. Which has seen a slow down in it's core phone and broadband business By taking on Time Warner, AT&T will be transformed from a stodgy telecom company into something more along the lines of Comcast which not only owns the pipes that deliver media, it also owns some of the media coming through those pipes.
This marriage is likely to further shake up the media world. For all including media mogul Rupert Murdock.>> A big question now is what did the Murdock's do? They ain't buy Time Warner and sources have told us they are not interested in buying Time Warner. What are they going to do?
They are going to have to to buy something to keep upscale.>> And as AT&T proves it's not just media companies looking to get their hands on other media companies and their lucrative content. Apple reportedly approached Time Warner about a deal about two months ago. Which means the tech giant is also out there looking for the right content to keep it's kingdom growing.
And now, might give Time Warner a second look.