The bottom-line question: AT&T, a low-growth company, sees TW as a potential growth engine, but will it invest the big bucks needed for TW to compete in the Netflix/Amazon universe? unlikely, Now AT&T, a $240 billion enterprise, has essentially invested a third of its value ($85.4 billion) to acquire a company that may contribute only 16% of its revenue. That’s a big gamble on the theory that TW’s earnings can exponentially grow and that synergies may also burgeon between content creation and AT&T assets with the type of bonehead management that leads this company
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T upper management does not have the talent or the imagination to compete with Netflix or Amazon. They have only a single solution to every problem, outsourcing and lay offs.