Posted February 05, 2019 08:00:57It sounds like the acquisition of the media company Time Warner is the biggest acquisition of 2017, but the deal also means Facebook will be the largest media company in the world.
The news comes as the Wall Street Journal reports that the deal could bring Facebook a new home in the United States and could help it take advantage of the burgeoning popularity of social media and YouTube videos, which are generating massive amounts of advertising.
The deal could also allow Facebook to tap into lucrative partnerships with TV networks and movie studios, the newspaper reported.
The transaction is worth more than $10.3 billion, according to an industry source, which is expected to bring a lot of pressure on Time Warner’s CEO Jeff Bewkes.
The Wall Street newspaper said Facebook could also have the opportunity to expand into other areas of the entertainment industry, including media.
Facebook has already invested in TV networks, movies and TV shows in the US and in Europe.
But the company is looking to move further into the US, where it is also struggling to find its footing in a fast-growing digital media market.
Facebook’s deal with Time Warner has been a long-term goal for the company, according the Wall St Journal, which first reported the news.
“We’re looking for the next big opportunity for Time Warner and a strong new partner that can help us compete for audiences in a rapidly changing marketplace,” Facebook’s head of communications and community, Andrew Krumholz, told the newspaper.
“That means we’re focused on building an entertainment ecosystem that has a broad reach across platforms that we’ve always had the potential to be a dominant player in.”
Facebook and Time Warner are expected to announce a definitive price and details on the acquisition in the next few weeks.