AT&T To Buy Time Warner For Total Equity Value Of $85.4 Bln

(RTTNews) - AT&T Inc. (T) announced a definitive agreement to acquire Time Warner Inc. (TWX) in a stock-and-cash transaction valued at $107.50 per share. The agreement has been approved unanimously by the boards of directors of both companies.

Time Warner shareholders will receive $53.75 per share in cash and $53.75 per share in AT&T stock. This purchase price implies a total equity value of $85.4 billion and a total transaction value of $108.7 billion, including Time Warner's net debt.

Post-transaction, Time Warner shareholders will own between 14.4% and 15.7% of AT&T shares on a fully-diluted basis.

AT&T expects the deal to be accretive in the first year after close on both an adjusted EPS and free cash flow per share basis.