Posted on 06/12/2018 1:49:31 PM PDT by Red Badger
AT&T announced that it was buying Time Warner for $85.4 billion in October 2016. The Justice Department sued last year to block the merger, citing concerns that AT&T, owner of satellite television provider DirecTV, could charge rival distributors more for Time Warner content, resulting in higher prices for consumers. The outcome of the trial could have implications for future deals in the telecom and media industries, as well as vertical mergers, where companies combine with their suppliers.
A federal judge said Tuesday that AT&T's $85.4 billion purchase of Time Warner is legal, clearing the path for a deal that gives the pay-TV provider ownership of cable channels such as HBO and CNN as well as film studio Warner Bros.
U.S. District Court Judge Richard Leon did not impose conditions on the merger's approval.
Shares of Time Warner jumped nearly 5 percent in extended trading. Shares of AT&T dropped more than 2 percent.
The Justice Department sued last year to block the merger, citing concerns that AT&T, owner of satellite television provider DirecTV, could charge rival distributors more for Time Warner content, resulting in higher prices for consumers. But AT&T has countered that the logic doesn't hold up since the point of owning content is to get widespread distribution, which brings in affiliate fees and advertising revenue.
The decision comes after a six-week trial.
AT&T, also the No. 2 wireless carrier in the U.S., said it was buying Time Warner in October 2016 to diversify its revenues and also become a media powerhouse that could attract consumers by bundling entertainment with mobile service. CEO Randall Stephenson has said the deal would help AT&T compete against tech giants like Amazon and Netflix, which are investing more in content.
The outcome of the trial will likely have implications for future deals in the telecom and media industries, as well as vertical mergers, where a company buys its supplier. Comcast has been eyeing a similar merger to combine production and distribution in a competing bid for Foxand was preparing to announce an offer as soon as Wednesday if Leon ruled in favor of AT&T in the trial, people familiar with the matter told CNBC.
And also easier to receive big government contracts.
No good will come from this. Ultimately the consumer will pay dearly for this mistake.
look what google, youtube, FB and twitter are doing to conservative speech. No one in DC gives a rat’s patootie.
I don’t think Dr. Bombay understands the actual amounts involved here.
sessions and trump have comet’s report finding Hillary excessively careless with classified material, having private file servers, and destroying evidence. They could have indicted her on those charges a year ago and then hit the foundation, Uranium 1, and pay for play. Trump called her a criminal for about 2 years now and nothing.
comeys
Why did the Administration oppose this?
Well bert you did it again. You like running against the mob ... and it is somewhat refreshing at times. As far as AT&T is concerned the marketplace will sort it out.
Correct. There is enough publicly known evidence on the clinton crime foundation to have charged her with corruption. Nothing. Sessions is a useless POs. And that is the kindest thing i can say about him.
sessions has a boss
Great flick.
“TPC”
From “The President’s Analyst”.
Of course, the market will in fact sort it out.
The DOJ brought the suit. Was that for show or did they mean it?
My question is will they quit or continue to fight?
I suspect ATT will keep some and sell some off.
In the market cut loose from deep pockets, can CNN survive?
I was paying $144 a month before cutting the cord. I now pay half that and have far more choices.
ATT/Timewarner will raise prices to pay for this.
True. If only he felt he could politically deal with the dirtbag
Then he is diminishing the rule of law and justice in the US. he has to inflate his balls like he does on everything else.
Someday the Mouse or Bezos will own EVERYTHING.
I’m betting on the Mouse.
Who knew a hard-working funny guy named Walt from Missouri would create the vehicle for the Anti-Christ?
Judge Green must be laughing his azz off in heaven...
if FReepers understood the future of the traditional telecom business AND AT&T’s plans to unbundle the content from the network, they would be more supportive.
This is a good thing. Att will let you buy only the content you want, on ALL your platforms.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.