KENA BETANCUR—AFP/GETTY IMAGES
AT&T to Buy Time Warner
AT&T, the communications and technology company, has made a bid to buy Time Warner for $85 billion. Time Warner is an entertainment company that owns TV networks like CNN and HBO. Both companies have agreed to the deal. But it will not be completed until approved by the federal government. The U.S. Senate will hold hearings on the deal in November.
The two companies say the deal is a way to adapt to changing times. As companies like Netflix and Amazon have changed the way many households pay for and watch TV, large communications companies like AT&T and Time Warner are being forced to adjust as well. But some people worry the deal could hurt consumers. The AT&T-Time Warner merger would create a huge company that would control a large share of the TV and telecommunications market. Ultimately, that could have a negative effect on customers.