AT&T TO PURCHASE TIME WARNER

AT&T Inc. has reached an agreement to buy Time Warner Inc. for more than $80 billion.  This would make the cellular company a huge player in the media if this comes to fruition.  This sale includes networks such as CNN, TNT, HBO, Warner Bros film and TV studio. The effort from AT&T comes at a point where the cellular industry has become saturated and the need for new areas of growth are necessary.  The acquisition would likely be completed in 2017.  AT&T closed on Friday at $37.49 and on the month chart it depicts the stock going bearish.  As the cellular company strives to find other methods of expansion it seems that saturation is effecting its stock price, therefore hence the difficulty in the increase of its stock.  On the other hand Stock of Time Warner were at a modest $ 89.84 as the stock continues to become bullish as revealed on the month chart, it seems that investors are for the sale as the stock has seen a jump of more than 8% Friday before closing.  It remains to be seen what other announcements could be beneficial for the company on Monday.