Photo Illustration by Michael Samples, source photo: scyther5 via iStock.
Time Warner Inc. is going to invest $100 million to produce TV-like programs and advertising on Snap Inc. with the aim of have the media giant’s content reach young audiences via the social network.
It’s a deal that could impact Dallas-based AT&T Inc. eventually, and fits into CEO Randall Stephenson’s vision for the telecom giant.
He has said that the future of video will be on mobile devices where Snapchat dwells.
Time Warner and AT&T are awaiting approval for a deal in which AT&T would acquire Time Warner for $85.4 billion.
Time Warner spokesman Gary Ginsberg told Bloomberg Technology in a statement that the agreement with Snap would drive larger audiences to its programming, and to new direct-to-consumer online services it will introduce.
Those shows will be produced specifically for Snapchat’s vertical format, Bloomberg said.
Snapchat is an app that allows people to send photos and videos that self-destruct after a few seconds, and it already has deals with other networks and studios that highlight their content as mobile magazines or shows, Bloomberg said.
Snap hopes the content will make users spend more time on the app.
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PlayersTV, the TV streaming division of Dallas-based sports media and entertainment firm Players Media Group, landed the investment from ReachTV, which has been distributing it since 2020. Now its presence on ReachTV's network could put PlayersTV on 2,500+ airport screens and in 1 million hotel rooms.
The two media giants plan to form a new standalone global entertainment company, which they say would boast the "most differentiated content portfolio in the world." AT&T's shareholders are expected to receive stock representing 71 percent of the new standalone company, while Discovery shareholders would own 29 percent.
The transaction is expected to create a best-in-class convenience business. Core-Mark will be part of PFG's national wholesale distribution segment, Vistar, but will remain headquartered in North Texas.
Germany-based FlixMobility operates Europe's FlixBus and FlixTrain brands—noted for their cool-factor mix of tech startup, e-commerce, and classic transportation traits.
The combined company will have an anticipated market value of $491 million. "For the past few years our focus has been exponential growth, mainly in the North American market," the team told us. "The move to public market facilitates this even more."