AT&T, Time Warner CEOs Discuss Merger, Why Talks With Apple Failed

Speaking as a guest on CNBC's "Squawk Box," AT&T's CEO Randall Stephenson said that when the opportunity presents itself, he will tell Disney's CEO Bob Iger that the acquisition won't change anything about the relationship between the two companies. In fact, the acquisition will prove to be beneficial for Disney, even though it may be hard to imagine given the competitive nature between Disney and Time Warner.

Stephenson explained that the deal will motivate AT&T to innovate its core business much faster. Specifically, the company will invest heavily in its "fifth generation mobile technology," which offers consumers one gigabyte speeds.

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He added that controlling Time Warner's library and assets under his belt is an added motivation to move faster.

"One gig speed delivered mobile — that's a big deal," Stephenson said. "We think if you are a Disney, if you are a Fox — that's a great thing for you."

What Happened To Apple?

Apple Inc. AAPL was previously reported to be paying close attention to the talks between AT&T and Time Warner, but Apple didn't proceed with a winning bid.

Jeffrey Bewkes, Time Warner's CEO, joined Stephenson on CNBC and answered why Apple passed on any deal.

According to Bewkes, Apple is in a different business altogether, as its core focus is on smartphones and electronic devices across the world. He also isn't convinced that Apple has enough focus on media production for a deal to make sense.

Bewkes went on to acknowledge that his company already does a lot of business with Apple and talk very often. However, the conversations never focused on exploring a combination of the two companies.

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