AT&T and Warner Plan to Disrupt Traditional Model with On-Line Video Bundles

AT&T is set to purchase Time Warner for around $85 Billion, a move that would create a media and communications company that would include TBS, CNN, HBO and the Warner Bros. film and TV Studios.

Analysts and industry observers see the move being initiated by the need to replace flagging wireless revenues and to compete with Netflix or YouTube as potential ‘points of entry’ for media consumers.

The deal still has to pass under the regulatory microscope, given the advantage this would give AT&T.

The speed of the deal has surprised many, driven by trends in the AT&T’s revenues. In the latest three-month period, AT&T lost 268,000 wireless subscribers, as well as 3,000 video subscribers.

What are your thoughts on the deal?