Time Warner


What: AT&T obtained approval from the Department of Justice to acquire Time Warner for US $85 million after a six-week trial.
Why it matters: This was the first time in four decades that the government directly intervened in a vertical merger, gaining the attention of corporations who feared a change in the course of the history of the media industry.

One of the biggest M&A decisions happened yesterday. A federal district court has allowed AT&T to acquire Time Warner, making the Trump administration’s Justice Department the loser in a high-profile legal case that will be taught in law schools for years to come.

On Tuesday June 12, in a D.C. courtroom packed with lawyers, journalists and investors, Judge Richard Leon ruled in favor of a deal that had been pending since October 2016 to go through with no conditions after years of negotiation, political uncertainty, and a six-week trial earlier this year. He declared: “The court has now spoken and the defendants have won.”

It’s the first time since 1970 that the Justice Department has sued to block a “vertical” merger, that is, the combination of two companies that do not directly compete with one another. Time Warner is a content producer while AT&T is a content distributor via its satellite services and mobile phone business.

The outcome was of interest not only to followers of AT&T and Time Warner; at stake was not only the deal that would bring together the telecom and content giants, but also a precedent for deals of a similar scale. It is a landmark for the entire industry, as companies like Disney, Fox, and Comcast waited to see how the case turned out before moving ahead with their own mega deals, and it signaled an unusual tack under president Donald Trump who says he promotes business and opposes regulation. As expected, barely 24 hours after the ruling, Comcast has announced a new bid for assets 21 Century Fox has agreed to sell to Disney. With US $35 a share in cash, the company is outbidding Disney by 19%.

The DOJ sued last year to block the merger based on the argument that prices for consumers would go up too much if the companies were allowed to merge, as AT&T could charge rival distributors more for Time Warner content. AT&T says they expect costs to consumers to go down since the point of owning content is to get widespread distribution, which brings in affiliate fees and advertising revenue and they point out that even if the government’s math is correct it would be a matter of cents more per subscriber per month.

Properties AT&T Will Own in the U.S. After Acquiring Time Warner

In the U.S, AT&T also has an ad sales unit with a particularly strong emphasis on addressable advertising. In time, Time Warner’s myriad of content channels can be offered to advertisers with additional targeting capabilities through AT&T’s detailed information on more than 156 million cell-phone subscribers in the U.S. This is of particular importance in the Hispanic market, which heavily over-indexes in cell phone usage. The following infographic (Time Warner on the top left corner) shows the major companies owning TV and entertainment properties:

[Source: Gizmodo]

A closer look at the list of companies, however, allows us to come up with a detailed list of properties that AT&T will use to survive in the increasingly competitive media landscape:

  • HBO and Cinemax, as part of Home Box Office Inc.
  • HBO Latino
  • TBS, truTV, TNT, Studio T, and TCM, as part of Turner Entertainment Networks
  • Adult Swim and Cartoon Network, as part of the TBS, Inc. Animation, Young Adults & Kids Media (AYAKM) division
  • CNN and HLN, as part of CNN News Group,
  • CNN en Español
  • The websites Super Deluxe, Beme Inc., and CallToons
  • DC Entertainment; DC Films, including all of the “Batman” movies
  • Turner Broadcasting International, Turner Sports, including the website Bleacher Report and the rights to March Madness and NBA playoffs
  • The CW (50%)
  • Warner Bros. Animation
  • Hanna-Barbera Cartoons
  • HTV
  • Tooncast
  • Fandango Media (30%)
  • Warner Bros. Consumer Products, Warner Bros. Digital Networks, Warner Bros. Theatre Ventures, Warner Bros. Pictures International, Warner Bros. Museum, Warner Bros. Studios, Burbank, Warner Bros. Studios, Leavesden, Warner Bros. Studio Tours, Warner Bros. Pictures, Warner Animation Group, Warner Bros. Family Entertainment
  • NonStop Television
  • New Line Cinema
  • Turner Entertainment Co.
  • WaterTower Music
  • Castle Rock Entertainment
  • The Wolper Organization
  • HOOQ
  • Blue Ribbon Content
  • Warner Bros. Television, Warner Horizon Television, Warner Bros. Television Distribution, Warner Bros. Home Entertainment, Warner Bros. Interactive Entertainment
  • Telepictures
  • Alloy Entertainment
  • eleveneleven

In addition, AT&T was already in control of the following:

  • Ameritech, Ameritech Cellular, Ameritech Interactive Media Services, Ameritech Publishing
  • AT&T Communications (2017), AT&T International, AT&T Originals, AT&T Alascom, AT&T Business Internet, AT&T CallVantage, AT&T Computer Systems, AT&T FSM Library, AT&T GoPhone, AT&T Information Systems, AT&T Intellectual Property, AT&T Labs, AT&T Mobility, AT&T Technologies, AT&T Wireless Services
  • BellSouth, BellSouth Advertising & Publishing, BellSouth Long Distance, BellSouth Mobility DCS, BellSouth Telecommunications
  • Centennial Communications
  • CenturyTel of the Midwest-Kendall
  • Cricket Wireless
  • Crunchyroll
  • DirecTV
  • Fullscreen (company)
  • Illinois Bell, Indiana Bell, International Bell Telephone Company, Michigan Bell, Nevada Bell, Ohio Bell, Wisconsin Bell
  • Otter Media
  • Pacific Bell, Pacific Bell Directory, Pacific Bell Wireless
  • QLT Consumer Lease Services
  • Rooster Teeth
  • SBC Long Distance, SBC Telecom
  • Southwestern Bell, Southwestern Bell Internet Services, Southwestern Bell Mobile Systems, Southwestern Bell Yellow Pages
  • Unix System Laboratories
  • AT&T U-verse
  • Yellowpages.com
  • YP Holdings

AT&T Could Win Big in Latin Markets After Acquiring Time Warner

AT&T’s big win in the U.S. could be paralleled in Latin America thanks to the popularity of properties owned both by AT&T and Time Warner. According to Market Realist, HBO and Cinemax generate a majority of their revenues in international markets through subscription to its OTT (over-the-top) services. In fiscal 2Q16, HBO’s revenues rose by double digits, indicating its popularity. After success in Mexico, the company launched HBO Now in Argentina, Spain, and Brazil.

AT&T 3Q16 company presentation

AT&T in Latin America

AT&T has a significant footprint in Latin America since it acquired DirecTV. Time Warner’s acquisition by AT&T would result in combining Time Warner’s premium content with DirecTV’s pay-TV operations in Latin American markets, which could boost its pay-TV subscriber base. However, AT&T planned to launch an IPO for DirecTV Latin America in March. Even though the IPO was suspended in April, the company might reconsider it in order to pay down some of the debt it’ll acquire after the Time Warner acquisition.

With the acquisition, AT&T will have access to Time Warner-owned properties centered on Latin American audiences:

  • HBO Latin America
  • HBO Brazil
  • Cinemax Latin America
  • Turner Broadcasting System Latin America
  • Chilevisión
  • TNT Latin America
  • I.Sat
  • Warner Bros Pictures International (Spain, Argentina, Brazil, Mexico)

In addition, AT&T owns Nextel, Iusacell, and Unefón in Mexico, as well as Univel in Argentina.

A summary of the most exciting recent news in online video and ad tech in the US, US-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.


Hulu has added programming from to its new live TV streaming service from 21st Century Fox, Walt Disney/ABC Television Group, ESPN, Fox News, FX Networks, Fox Regional Sports Networks and National Geographic. The service is set to launch in early 2017, and will offer limited commercials for $7.99 per month or commercial-free for $11.99 per month.

Univision Digital, the digital division of Univision Communications Inc. (UCI), announced the launch of “CNCO Evolution,” a new web series that tells the story of how the winners from “La Banda” are dealing with their newfound success and how they prepared for the launch of their first album, Primera Cita. The six-episode series presented by Walmart, premieres today on LaBandaOficial.com.

Video compression products provider EuclidIQ has announced the immediate availability of OptiiQ.ly, an Online Video Platform (OVP) that offers a simple end-to-end channel solution for distribution of live and pre-recorded video content over the internet.

teadsNative video platform and outstream video provider Teads is looking into adding haptic feedback to its mobile ad video solutions. Teads’s studies reveal that haptic video ads, which include a small motor in the phone that creates vibrations so that people can experience sensations from videos, increase user attention, engagement, and interaction vs. non-haptic ads.

Online video platform providers Brightcove, Vidyard and Kaltura came in at the top of a study by Forrester Research that rated platforms’ abilities to support sales and marketing efforts in the enterprise segment. Competitors include Adobe, IBM and Ooyala.

Portada‘s 2017 Online Marketing Guide is out! Download it for free and get the latest in opportunities and challenges in the industry, video ad market forecasts and video audience development.

FilmStruck, Turner Classic Movies’ new streaming service for film lovers, has now launched. The service features a collection of hundreds of classic, indie, foreign, and cult film, and will cost $7 per month.

Sojern, a marketing engine for travel brands with clients including Marriott, Disney, Emirates, and Hertz, announced it is the first company in travel to become a DoubleClick Certified Marketing Partner.  The list of approved members is hand-selected and vetted by Google and partner companies have proven expertise in successfully delivering results on DoubleClick’s suite of advertising products at scale.


A report from Newzoo has revealed that the Latin American games market is the second fastest growing sector in the world, and that this year the region will generate $4.1b in video game revenues for a year-on-year rise of 20 per cent.

A new IMS survey found that about 90% of people connected to the Internet in Latin America own a smartphone, and that Android is the preferred operating system.  There is also going to be an estimated 200 million smartphones in the region by 2018. This annual study tracks regional trends in digital consumption and mobile apps.

PORTADA RESEARCH: Hispanic Online Video Ad Market to Soar to US $450 million. In a new report, Portada estimates that the Hispanic Online Video Ad market volume will climb to US $450 million by 2020. Particularly high growth is to be expected by branded content videos. Among video ad-tipes, in-stream will continue to have the largest share, although out-stream will grow at a higher rate.

Opera TV has announced a partnership with Claro video, a premium video on-demand service, to bring its service to millions of devices through participation in Opera TV’s Certification operaProgram and distribution through the Opera TV Store. Through the partnership with Opera TV, Claro video is increasing its presence in the growing Latin American market by streamlining its app development and deployment efforts, making it available on a variety of ecosystems and devices where over-the-top (OTT) is enabled by Opera TV.

According to the Mexico Total Telecommunications Services Market from Frost & Sullivan’s Digital Transformation team, the current Mexican telecommunication services market is mostly monopolized by Telmex and its mobile arm Telcel. But in the PayTV segment, Televisa has the largest share.

Last Wednesday, the Argentine Ministry of Communications met with the FCC in Washington to discuss the issue of regulating emerging technology and platforms in the OTT market as a part of Argentina TIC Day, a business round set up by businessman Oscar Aguad to attract investment in Argentine telecommunications companies.

Thanks to OTT subscriptions to services like Netflix and Claro Video, Brazil and Mexico are the markets with the second and third-highest growth (26 and 25 percent, respectively) in the segment in Latin American and OECD countries.

Carlos Slim and his company, América Móvil, are expressing interest in entering the pay TV market in Mexico. During a conference, Daniel Hajj, América Móvil’s general director, said that the company is following the rules for entering the pay TV market, which were set by Mexico’s Federal Telecommunications Institute. América Móvil already has pay TV services in Chile, Colombia, Peru, Ecuador, Brazil and soon Argentina.

What: Time Warner Inc. has moved Warner Bros.’s US$250 million digital media account to Dentsu’ agency Merkle.
Why it matters: Omnicom, incumbent of Warner Bros’ digital media account, will continue handling the traditional media part of the account.

9f18050d0286a2477a9103650b803775_400x400 exdu2xwr_400x400Time Warner Inc. has moved Warner Bros.’s US$250 million digital media account from an Omnicom media-buying to Dentsu’ agency Merkle as part of an effort to link up data across Time Warner brands.

Omnicom will continue to handle the traditional media part of the account.Merkle also supports HBO. The studio, which is by far the biggest spender within Time Warner, spent $906 million on U.S. paid media in 2015, according to Kantar Media.The studio’s total digital media account will be north of US$250 million, according to the people familiar with the matter.

The move is in line with marketers’ growing desire to link up data from various online efforts, like e-commerce, video streaming and ad buying to better target individuals.

Time Warner brands include CNN-parent Turner and HBO.

Media consultancy Unbound helped Time Warner with its agency review process, according to people familiar with the matter.


A summary of the most exciting recent news in online video and ad tech in the US, US-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.


Twitter is shutting down video-sharing service Vine “in the coming months,” the company announced Thursday. Vine, which lets users share short video clips, debuted in 2013. Twitter acquired Vine in 2012 before the service had even launched. The news comes the same day Twitter announced it would lay off more than 300 workers, or 9% of the company’s global workforce, within the company’s sales, partnerships, and marketing teams.

“Nothing is

British martech company BlueVenn has formally launched operations in the US, announcing its headquarters in Boston. The company also introduced the BlueVenn Marketing Platform, that equips marketers with the tools to dive deep into customer data, extract insights and create omnichannel journeys, in real-time.

Groovy Gecko has announced the launch of a self-managed version of its award-winning Live Presentation System, which enables the delivery of video webcasts to multiple devices with optional interactive elements. It also enables live presentation webcasts, including PowerPoint slide synchronisation with optional moderated Q&A and polls, plus other interactive features.

Chinese predictive marketing software Viscovery has raised $10 million US to personalize advertisement on online video streaming. The platform uses artificial intelligence mixed with image recognition to determine which advertisements viewers will want to see based on the content that is being streamed at that time.

PORTADA RESEARCH: Hispanic Online Video Ad Market to Soar to US $450 million. In a new report Portada estimates that the Hispanic Online Video Ad market volume will climb to US $450 million by 2020. Particularly high growth is to be expected by branded content videos. Among video ad-tipes, in-stream will continue to have the largest share, although out-stream will grow at a higher rate.

teadsOutstream video specialists Teads has announced a feature that will allow advertisers to turn existing TV creatives into vertical video for smartphones, with a 360 effect, and deliver it into premium editorial environments. Preexisting landscape video creative will fit into a vertical format compatible with both Android and iOS devices.This new feature is completely free for all Teads’ clients and will also be accessible for all premium publishers using Teads’ ad server and SSP.

AT&T‘s DirecTV Now online video service will cost $35 per month including mobile streaming costs, aiming at those who reject pay-television subscriptions. It will have more than 100 channels.

On Saturday, AT&T Inc. and Time Warner Inc. announced they have entered into a definitive agreement under which AT&T will acquire Time Warner in a stock-and-cash transaction valued at $107.50 per share. The agreement has been approved unanimously by the boards of directors of both companies. AT&T also announced that its DirecTV Now online video service will cost $35 per month, including mobile streaming costs. There are considerable regulatory hurdles for the deal to be approved by regulators.

Subscribe to weekly VIDEO MARKETING UPDATES!

Cable and entertainment company Comcast Corp posted higher third-quarter revenue on Wednesday, fueled by investments in video and high-speed internet and business services divisions.


Mobile marketing company based out of Buenos Aires, Logan, has reached an agreement with Mexican investment firm Pedralbes Partners, through which the latter will invest US $2 million in the former. The investment is meant to help the company expand in Brazil, Mexico and Argentina.

comScore, Inc. and IMS Internet Media Services (IMS) today released the second edition of IMS Mobile in LatAm, a joint report on trends in digital consumption and mobile apps usage in six countries in the region (Brazil, Mexico, Argentina, Colombia, Peru and Chile) that surveyed smartphone and tablet users aged 15 or older. It found that 9 out 10 people connected to internet in Latin America have a Smartphone, and that sites within the IMS portfolio have a combined potential reach of 76% of mobile users, representing the third largest digital advertising audience in the region after Google and Facebook.

Citic Private Equity, a Chinese financial conglomerate, is in talks to buy a €2bn controlling stake in Spain’s Imagina Group, a media company that distributes the country’s top football league
citicinternationally and holds domestic rights in Spain to the Formula One World Championship, major football leagues, and assets in sports rights in Latin America.

According to the Consejo Nacional de Televisión’s (CNTV) first public survey about content and TV on the Internet, 84% of Chileans want regulation to limit access to inappropriate content on the Internet. 39% saying they had watched violent or inappropriate type of content at least once online and half of them accessed such content through social media. 29% found it via Google.

A summary of the most exciting recent news in online video in the US, US-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.


Amazon is ready to compete with YouTube: The e-commerce giant has launched a service that allows users to post videos and earn royalties from them, called Amazon Video Direct. The videos will be free to watch and will not have ads, but viewers can also opt to rent or buy videos they like.

Time Warner Cable
claims that online video companies are lying about how much more effective in reaching audiences they are than linear TV. The company made the interesting decision to hold an event at the Newfronts, which are usually set up by digital media companies doing their best to time warner
make television irrelevant. Fred Bucher, chief marketing officer at Time Warner, pointed out that cable is digital as well, and  that its video ad delivery is much more effective than other online video platforms.

According to the Digital Content NewFronts’ Video Ad Spend Study, there has been a 114% increase in investment in original digital video programming over the past two years. Details on other interesting findings in the report here. 

Yahoo conducted a video report with Nielsen and Hunter Qualitative, and revealed that on the one hand, horizontal landscape ads are more effective than vertical landscape ads in terms of increasing affinity for brands, but on the other hand, portrait ads are far more effective vertically. Auto-start video ads in native environments were also found to be particularly effective, generating 51% better aided recall, 10% higher brand familiarity, and 4% higher brand affinity compared to user-initiated ads.

As a part of its efforts to expand its presence in online video, Twitter has paid $10 million for the rights to stream 10 Thursday night NFL games without authentication, with 15 ad slots for each game. The digital platform will also introduced advanced targeting tools for video ads in the fall.

Magna Global, whose clients include Johnson & Johnson, Coca-Cola, and Fiatannounced at NewFront that they have agreed to buy $250 million in video ads from YouTube. David Cohen, president of Magna Global North America commented, “We have negotiated a meaningful share shift from linear television to digital video.”

AdWorks, AT&T‘s advanced advertising services unit, claims that they saw a boost in sales for advertisers between 19 and 87% in a recent trial of multi-screen, multi-device addressable advertising conducted with Opera Mediaworks. TV advertising increased sales by 19 percent, and 27 percent when a consumer received the same ad on both their TV and mobile device.

Condé Nast Entertainment announced plans to expand its premium digital video network with three new incubator programs designed to discover and develop the next generation of storytelling talent, more video content, increased data capabilities, a distribution partnership with Comcast further adding to the company’s comprehensive distribution across more than 50 platforms, and industry-first measurement for branded content video performance.

Virool, the video distribution platform for marketing professionals, and Rubicon Project, which operates a giant open advertising marketplace, have created a new vertical video unit for advertisers and editors. The product, called Vertical Reveal, will help scale programmatic advertising to bring video ads to buyers and sellers on mobile devices.

Revelist.com, the recently launched millennial women website from CafeMedia, is reporting record digital video performance and traffic growth, exceeding 1 million monthly visitors and 76 million video views in its 3 months in market.

New trends in online video monetization, measurement, engagement and many more aspects of the emerging OTT market will be explored at the Latin Online Video Forum during PortadaLat in Miami on June 8-9, 2016. Get your tickets at early bird price now!


According to a report from the Interactive Advertising Bureau (IAB), online ad investments grew by 24% in Chile during 2015. Over the last five years, Chile’s online advertising grew from less than $50 million yearly business to current $160 million. Chile’s Internet penetration is also impressive – there are 76 connections for every 100 inhabitants – and the country has one of the highest broadband penetration rates in the region.

Telefónica has announced that it spent $100 million to update its LatAm satellite hub in Peru in order to support online video
growth in the region and expand its Movistar Play SVOD service, which it claims will be available in 12 coutries by the end of 2016.

According to the Global Programmatic Advertising Spending Market 2016-2020 report, global programmatic advertising spending could grow at a CAGR of 20.56% during the period 2016-2020, as programmatic advertising picks up speed in LatAm and the APAC region.

lanacionArgentinean newspaper La Nación has launched a daily live online video newsfeed to target mobile audiences.

HBO has announced that basic pay-TV subscribers in Chile with HD encoders and TVs will be upgraded to premium HD HBO package in order to improve the user experience.

It’s official: Argentines now watch more content online than they do on TV. A study by IMS reports that Argentines
watch 11.1 hours of content per week digitally, versus 5.2 hours on TV.
NBC Olympics and Buzzfeed are teaming up to produce the NBC Rio Olympic Discover channel for the Olympic Games in Rio de Janeiro, Brazil. NBC is also partnering with Snapchat to create “Live Stories” from attendees at competitions in the form of videos and photos.

A summary of the most exciting recent news in online video in the U.S. and Latin America. If you’re trying to stay up-to-date with these constantly-evolving markets, look no further.

Brought to you by Gretchen Gardner, member of Portada’s Editorial Team.


AGENCIES LIKE IT! A third quarter survey of advertising agencies conducted by STRATA, a media buying and selling software firm, found that 53% of agencies see their business increasing now over the same time last year, offering optimistic signs for the ad economy as the holiday season approaches. Broadly, the outlook for the end of 2015 looks strong as 45% project their growth to be higher in the second half as compared to the first.Client budgets this year are expected to increase at 17% of agencies, while 57% of agencies polled see client budgets remaining flat compared to last year. Forty percent of agencies plan on hiring additional staff in the second half of this year, the highest percentage recorded in the STRATA Survey in five years. Despite the positive signs, attracting new clients is now the top challenge for 33% of agencies, overtaking media mix (22%), which was the top agency challenge for three of the last four quarters. STRATA.

univisionUNIVISION GOES LIVE: You’ll never have to miss your favorite Telenovela again, because Univision Communications has launched a direct to consumer video service, Univision Now, with a live stream of its own content as well as that of Unimás. The channel will be available for $5.99 a month or $59.99 a year and can be viewed on iOS, Android and Web.

MAKER TO MAKE A MARK IN EUROPE: MCN Maker Studios has partnered with the soccer club AS Roma, based in Italy, to create original video content in an attempt to grow the club’s digital audience through social sharing.

HULU AND TIME WARNER, OVER BEFORE IT HAPPENED? Of course you’ve heard – Time Warner and Hulu have been in talks to discuss the former’s interest in investing in the latter. But now, sources are claiming this is unlikely to happen. huluCould it be the fault of Hulu’s unattractive next-day availability licensing model? Rumor has it that Time Warner doesn’t want its properties (like HBO) providing content to other services. We’ll keep our fingers crossed, though, because we’d probably never leave the couch (or turn on another television) if we could stream Game of Thrones.

MOVIN’ ON UP: Isaac Lee, CEO of online network and brainchild of Univision and Disney/ABC News, Fusion, has been named the chief news and digital officer at Univision Communications Incorporated (UCI). He will take on the gargantuan task of overseeing UCI’s online, mobile, digital, content and music platforms like El Rey Network, The Root and Flama.

A SOCIAL NETWORK FOR THOSE WHO WANT TO ‘LIKE’ EVERYTHING: We at Portada have always assumed that people used social networks to find things to become outraged about, but it turns out we may be wrong. beBee, a social network that uses an algorythm to figure out what content we actually want to see, has nine million users, and it was only launched in February. We’re tempted to sign up just to make all mentions of Donald Trump disappear from our newsfeed.

VIDEO KILLED THE RADIO STAR, BUT STILL MAKES MONEY Supply-side platform Matomy Media Group has acquired Optimatic, aprogrammatic video ad company, for a minimum of $25 million. The acquisition is part of an effort to improve Matomy’s digital video capabilities. Video is increasingly important to the revenue generated by mobile ads, as the company expects the deal to produce$315 million in revenue in just the first year.


ITS ALL ABOUT PARTNERING!: Engineering, sales and marketing company Pontis Communications has signed a partnership with Imagine Communications to support the latter’s work in Bolivia, Chile, Costa Rica, Mexico, Paraguay, Uruguay and Venezuela. Pontis will be working out of Buenos Aires, Argentina, and focus on networking and distribution solutions.

TELCOM AND TV MERGE IN PERU: PayTV and telecommunications provider Telefónica in Peru has selected ChyronHego’s Channel Box Prime to help launch a channel on the Movistar TV Network. This will be Channel Box Prime’s debut, and should render many inefficient and labor-intensive jobs unnecessary with its automated channel. The programming schedule will mirror that of Movistar TV Network.

NETFLIX FIGHTS LATAM PIRACY: According to a study by Grupo Radar, Netflix was more popular than the illegal torrent and streaming sites Popcorn Time, Pirate Bay and Cuevana. 22% of those surveyed claimed to have used Netflix, while two years ago, that number was at 4%.


What: Time inc. will spin off parent company Time Warner and raise US $1.4 billion of debt that will be used to finance the acquisition of IPC Media.
Why it matters: The debt will be raised through an offering of unsecured senior notes and also through a secured loan facility.

TIMEWARNERTime Warner Inc. it’s spinning off parent company Time Warner with US $1.4 billion in debt. The financing will be used to buy Time Inc.’s U.K. operation, IPC Media.

The company is planning to raise the debt through an offering of unsecured senior notes and also through a secured loan facility, according to a statement. However, Time Warner will not be a guarantor or provide credit support for the notes or the loan, the cable company said.

The remaining of the debt after buying IPC will be used to pay a cash dividend back to Time Warner.

Howard Averill ,Time Warner’s chief financial officer, first revealed an US $1.3 billion debt load attached to the Time Inc. spin-off in early February during TW’s fourth quarter earnings call.

Time Warner bought IPC Media, which publishes editions of magazines such as Woman’s Weekly, NME and InStyle, in 2001 for about US $1.7 billion.

According to sources within Time Inc. ,the spinoff may happen by the end of the second quarter.

Sources: Foliomag,WWD




What: iSocket has raised US $5 million round led by Time Warner.
Why it matters: Advertising Sales (and buying) automation platforms are in demand. Companies like iSocket help agencies and publishers automate much of the process.

isocketOnline ads seller iSocket has raised US $5 million in new funding. The round was led by Time Warner Investments, with  Condé Nast, R&R Venture Partners and investor Vivi Nevo contribution.

 The company is launching iSocket for Advertisers, an ad-buying tool for agencies and brands.

Online advertising sales and purchases can require up to 50 steps to complete, iSocket helps publishers to automate much of the process. In addition to the funding, the company is launching iSocket for Advertisers, an ad-buying tool for agencies and brands. iSocket will also hire Kevin McCabe, a former ad executive at Microsoft, as vice president of business development.

“We’re very pleased to have Time Warner and Condé Nast, two of the biggest names in publishing, endorsing our model for advertising sales automation,” said CEO Richard Jalichandra in the funding release.


What: iSocket has raised US $5 million round led by Time Warner.
Why it matters: Advertising Sales (and buying) automation platforms are in demand. Companies like iSocket help agencies and publishers automate much of the process.

isocketOnline ads seller iSocket has raised US $5 million in new funding. The round was led by Time Warner Investments, with  Condé Nast, R&R Venture Partners and investor Vivi Nevo contribution.

 The company is launching iSocket for Advertisers, an ad-buying tool for agencies and brands.

Online advertising sales and purchases can require up to 50 steps to complete, iSocket helps publishers to automate much of the process. In addition to the funding, the company is launching iSocket for Advertisers, an ad-buying tool for agencies and brands. iSocket will also hire Kevin McCabe, a former ad executive at Microsoft, as vice president of business development.

“We’re very pleased to have Time Warner and Condé Nast, two of the biggest names in publishing, endorsing our model for advertising sales automation,” said CEO Richard Jalichandra in the funding release.


What: Univison teams up with TWC and Bright House to broaden its reach and offer access to content for digital platforms and VOD. TWC and Bright House Networks will be among the first distributors to have Robert Rodriguez’s El Rey Networks.
Why is it important: Media companies in the United States are building or strengthening their  partnerships in order to better reach Latino audiences in shared markets nationwide. Says Tonia O’Connor, Univision’s president of content distribution, that “Hispanics represent a significant growth opportunity for distributors”.

Spanish-language media giant Univision Communications prepares to reach an ever-growing Hispanic audience in the United States, thanks to a new deal it has just signed with Time Warner Cable and to Bright House Network’s launching of two Univision networks, featuring sports and soap operas (“telenovelas”).

Yesterday afternoon, Univision and TWC signed a new, multiyear distribution deal that includes carriage of several of Univision’s new networks including the highly anticipated English-language El Rey Network, an entertainment project which is being developed by Hollywood filmmaker Robert Rodriguez and FactoryMade Ventures. (El Rey attempts to attract second- and third-generation Latinos who primarily watch English-language TV.)

This deal’s financial terms were not disclosed, but the pact came well in advance of the expiration of the companies’ current arrangement and was reported as not contentious.

Such multiplatform arrangement provides continued distribution for the main Univision broadcast network, its secondary network UniMás and cable entertainment channel Galavisión, plus a slate of new networks: Univision Deportes, telenovela network Univision tlNovelas, and FOROtv, a feed of the Mexico City-based news network owned by Grupo Televisa, a minor stakeholder in Univision. The deal will also provide Time Warner Cable’s customers access to content for digital platforms, including its video-on-demand service and “TV Everywhere” offering that allows subscribers to watch shows when they are away from home on their tablets or laptops.

Bright House Networks, on the other hand, announced it will launch two new Univision networks –Univision Deportes Network and Univision tlNovelas, available as of today. Customers will also have access to a robust offering of content for digital platforms and VOD, which includes “TV Everywhere” content for Bright House TV’s platforms and access to Univision’s UVideos and Univision Deportes digital properties.

Bright House Networks will also be among the first distributors to carry the El Rey Network (beginning January 2014).

TWC and Bright House were ranked among the Top Ten Multichannel Video Service Providers in the United States, by number of subscribers, in 2012:

Multichannel Service Operator

# of subscribers





Dish Network Corporation


Time Warner Cable, Inc.


Verizon Communications, Inc.


Cox Communications, Inc.




Charter Communications, Inc.


Cablevision Systems Corporation


Bright House Networks, LLC


Source: Wikipedia, with estimates from SNL Kagan.


Sources: LA Times, PR Newswire.



What: Time Inc. will soon be inking a deal to purchase American Express’ luxury publications.
Why is it important: Banking regulations discourage licensed banks from participating in non-financial businesses, which is the reason behind AmEx’s magazines forthcoming sale.

According to sources such as AdWeek and The Wall Street Journal, and although neither side has yet publicly acknowledged the impending sale, Time Inc. may be close to a deal to buy American Express’ luxury publishing division.

Negotiations reportedly began to take place after banking regulations –that limit American Express ability to get involved in non-banking activities– required that, being AmEx a bank holding company, exited noncore businesses, even if the publishing division was a small business given the company’s size. Rumors have escalated after the arrival, last week, of Time Inc.’s new CEO, Joe Ripp.

The five high-end magazines Time Inc. would be acquiring are Food & Wine, Travel + Leisure, Departures, Executive Travel and Black Ink. It is still not clear how much would Time pay for the titles. Adding AmEx chic magazines to Time’s current 130 titles (Time, Fortune, Life, Golf Magazine, InStyle, People, Sports Illustrated, etc.) would further allow a more targeted communication towards upscale consumers.

It is expected, however, that Time Warner Inc., Time Inc.’s parent company, relaunches the publishing unit as a stand-alone company in the near future.

WSJ’s William Launder highlights the fact that Time and American Express have a long-standing relationship, because due to an arrangement dating to the early 1990s, Time handles functions like subscription fulfillment and other back-office services on behalf of American Express.

Join us at PORTADA Mexico!

Get our e-letters packed with news and intelligence!