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At & T Merger

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Briefly describe the selected negotiation.

AT&T, the second largest mobile provider, has very recently reached an agreement to purchase the media conglomerate Time Warner Inc for more than $85 million. This union comes only two years after AT&T acquired DirectTV, the nation’s largest satellite television provider. The two companies have been in talks about the possible merger since August. This merger will give AT&T, which falls second to Verizon in the mobile phone industry, entrance in the world of media and entertainment.
Examine the issues versus the interests of the parties involved. Determine how this difference affected the negotiation.

This merger could make AT&T an entertainment empire.
The AT&T and Time Warner union comes …show more content…
Time Warner, however, will only receive 125% of its market value. That’s not to say that that is not a substantial amount of revenue, but it looks as though AT&T had more to gain from this merger than Time Warner. The disproportionate gains of this merger make this a distributive negotiation.

This would turn a wireless company losing grip with consumers in the home into much more of a media company akin to Comcast and NBC.”

A merger between AT&T and Time Warner would be a historic deal. For starters, it could suddenly give AT&T control over a massive number of the world's most valuable media brands. It would complete the transformation by the wireless carrier — already the nation's second-largest — into a fully-fledged entertainment powerhouse, launching an entirely new chapter in the history of the telecommunications giant. And it would be no less monumental for the rest of the communications industry, a rapidly consolidating area of business in which Internet providers are increasingly playing a central role in how consumers work and

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