The Market Reaction And Enlightenment Of AT&T’s "Protracted" Acquisition Of Time Warner

In recent years,the global telecom industry is facing the challenge of market saturation,and telecom operators are carrying out strategic transformation.Enterprise merger and acquisition is an important means for telecom operators to cope with challenges and realize strategic transformation.On the one hand,enterprises can enter the potential market through horizontal investment and acquisition,realize the resource integration and scale effect of the telecom industry,and improve the efficiency of enterprises.On the other hand,enterprises can expand the upstream and downstream areas of the industrial chain through vertical mergers and acquisitions,and establish content and service advantages in addition to voice and traditional data services.In the face of changes in the telecom industry,AT&T took the initiative to seek change.It proposed to buy T-mobile in 2011,but was rejected by the regulatory authorities.Subsequently,AT&T began to focus on video business,led and participated in a series of global mergers and acquisitions,and committed to develop into a comprehensive telecommunications and media group.AT&T’s acquisition of Time Warner was also one of its strategic transformation measures.This paper takes AT&T’s acquisition of Time Warner as a case study.First of all,this paper introduces the basic information of the case,through its meanderings acquisition process(before the President’s comments,followed by the us department of justice antitrust lawsuits,ultimately with a federal judge in court approval blockbuster between AT&T and Time Warner merger ended),clear AT&T the crux of the acquisition of Time Warner "protracted".Secondly,the motivation analysis is made from four perspectives: seeking new profit growth points,improving industrial layout,seizing market share and creating synergies.Then,the market reaction of each of the five key nodes in the acquisition process is studied with the event research method.When there is a signal hindering AT&T’s acquisition of Time Warner,the market will generate a positive excess yield and present a positive market reaction,indicating that the market does not agree that AT&T and Time Warner can bring huge benefits to AT&T.Finally,the conclusion and inspiration are drawn.In the face of the impact of the Internet of things wave,AT&T took the initiative to carry out strategic transformation.Although the results of the event study showed that the market was not optimistic about this merger,AT&T firmly believed that the merger could produce huge synergies in the long run.In front of the saturated industry market,Chinese enterprises can learn experience from AT&T’s acquisition of Time Warner,cases,consistent with the strategic transition planning to business decisions,make reasonable strategic M&A decision,choose the right means of acquisitions and mergers and acquisitions pay,innovation in the field of business,adapt to changing markets and rapid technological environment;From the perspective of the market,we should improve the development of the securities market,respect and attach importance to the market,strengthen the supervision and management of the market,and create a relatively fair market environment.From the perspective of the government,the government should adhere to the market-oriented approach and avoid too much involvement in the merger and acquisition activities of enterprises.The government needs to open its hand,let the market become the guiding subject,follow the operation rules of the market economy,and make efficient mergers and acquisitions become the norm of mergers and acquisitions.