Top telecoms branch out to new markets

Article Excerpt

The U.S. is poised to loosen rules for telecommunication companies that should create growth opportunities for both AT&T and Verizon. More specifically, those industry leaders should be better positioned to develop and sell new, more-profitable Internet plans. Both companies should also gain from the big acquisitions they expect to close in 2017. AT&T INC. $41 (New York symbol T; Income Portfolio, Utilities sector; Shares outstanding: 6.1 billion; Market cap: $250.1 billion; Price-to-sales ratio: 1.6; Dividend yield: 4.8%; TSINetwork Rating: Average; www.att.com) is the largest wireless carrier in the U.S. It also offers traditional phone and satellite TV services. In October 2016, the company agreed to acquire media company Time Warner Inc. (New York symbol TWX) for $85.4 billion in cash and shares. If you include Time Warner’s debt, the total value of the deal is $108.7 billion. Following the purchase, Time Warner investors will own roughly 15% of the combined company. Time Warner owns several popular cable TV channels, including CNN, HBO, TNT, TBS…