The name of the company Time Warner is being changed to WarnerMedia, post the successful closure of deal with AT&T for $85 billion. It has also come to light from an internal document from an AT&T top executive that the CEO of Turner, John Martin, is leaving the company.
There was a suit by the Justice Department of the US to put a stop to this deal, citing risk to consumers in the form of decrease in competition and possibility of a price rise. Last week, this was overturned by a central judge and termed the bid as legal. Post this, Thursday last week, AT&T finished buying Time Warner Company.
The memo drafted by the new head of Time Warner, John Stankey, threw light on revised functional organization of the new merged entity. The chief of Warner Bros, Kevin Tsujihara, and head of HBO, Richard Plepler, will continue to hold their positions. On the other hand, head of Turner, Gerhard Zeiler, president of Turner, David Levy and president of CNN Worldwide, Jeff Zucker, will be directly answerable to John Stankey.
Stankey stated in the memo that both the involved companies are highly layered and able firms. He highlighted that the companies are presented with a competitive arena, which takes the importance of velocity and innovation to unprecedented heights. He stated that the reason for renaming of Time Warner is that there was frequently a mixup with Time Warner Cable Company, which was purchased two years back by Charter Communications.
Last week, the chief of AT&T, Randall Stephenson, stated that he has a feeling that there is a presence of appropriate people to provide leadership to different parts of the newly evolved company. He also added that there are plans by AT&T to get invested in novel businesses and make them a part of AT&T.