just came across this at &t have signed up too AT&T: CEO...

just came across this at &t have signed up too

AT&T: CEO Stephenson Just Revealed Major Time Warner Merger Upside Catalyst


Advertising monetization "orders of magnitude" higher
CEO Stephenson states in no uncertain terms the monetization of Time Warner's massive advertising inventory of over 750 billion impressions will provide a massive and immediate jolt to the company's top and bottom lines. Stephenson states:
"I get really enthusiastic as I think about distribution affecting the entertainment because the easiest place and I would say the quickest benefits will come from the idea that Time Warner through Turner networks primarily has a massive inventory of advertising. Think about Turner networks and how many ad, what their ad inventory looks like in there? It's like 750 billion plus impressions per year. On the AT&T side through DirecTV primarily, but also through our mobile business, we have 150 billion 200 billion impressions per year."
So the combined entity will hold nearly one trillion ad impression per year. This is incredibly astounding to me. Here is the kicker. Stephenson states AT&T will be able to monetize Time Warner's 750 billion ad impressions at two to three orders of magnitude higher.

I must say this is a point I had not considered. Now that Stephenson has brought this fact to my attention, I'm much less concerned about the two companies' combined debt load and how AT&T is going to continue to pay the juicy current dividend payout. Yet, how will AT&T attain this exponential increase in ad monetization you ask? By targeting the ads as Stephenson explains:
"On the DirecTV side and our mobility side, we are very targeted in how we deliver advertising and we have a significant amount of unique viewership data on our customers and by virtue of targeting using addressable advertising and even getting cross-platform, device-specific, (and) set-top box specific targeting advertising."

"To what extent can this information and data, the viewership patterns influence and drive these higher yields on the 750 billion impressions that are within Time Warner and Turner Network specifically, we think is significant."

I have been behind the AT&T/Time Warner acquisition from the start simply because it looked like the right thing to do from an operations perspective. If AT&T is going to pay billions of dollars to build out the network so everyone everywhere on any device can access and consume content, AT&T might as well own it and reap the lion's share of the profits. I had no idea AT&T had the potential to monetize the ad revenue two to three magnitude of orders higher the Time Warner. I say this opportunity will go a long way to decreasing the debt load that so many have espoused will be the end of AT&T's dividend.
The Bottom Line
CEO Randall Stephenson has provided me and other current AT&T shareholders another solid reason to sleep a little easier at night. What's more, this newly revealed revenue boosting characteristic of the Time Warner acquisition will be easy to implement. The increased revenue streams could come online in short order after the acquisition is finalized. AT&T expects that to happen prior to the end of 2017. Add to this the opportunity for corporate tax reform and regulatory relief in 2018 and you have a recipe for success. I say the negative pieces out recently harping on the combined entities massive debt load is short sighted. These authors are myopically focused on the debt and not the big picture. The combined entities' ad revenue will be significant and orders of magnitude higher than before with little or no effort. If the debt load remained the same and the combination of the company had zero synergistic aspects, I would be worried as well. Yet, this simply is not the case. The stock remains a solid long-term buy. Those are my thoughts on the matter. I look forward to reading yours.

https://seekingalpha.com/article/40...aled-major-time-warner-merger-upside-catalyst