Deals
AT&T Has 120 Billion Reasons to View Time Warner Cautiously
- Executives of both companies said to have met in recent weeks
- Phone carrier’s debt rating is third-lowest investment grade
Is an AT&T Takeover of Time Warner Imminent?
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AT&T Inc. may be interested in a deal with media giant Time Warner Inc., but the phone carrier’s ambitions are constrained by its hefty $120 billion debt load and its desire to keep an investment-grade credit rating.
Senior executives of AT&T and Time Warner have met in recent weeks to discuss various business strategies, including a possible merger, people familiar with the situation told Bloomberg Thursday. The Wall Street Journal said Friday the companies could reach a deal as soon as this weekend. Time Warner shares surged as much as 11 percent on the news, valuing the company at more than $70 billion.