Judge rules AT&T can complete $85B acquisition of Time Warner
AT&T on Tuesday received the green light to move forward with an $85 billion deal to buy media giant Time Warner, bringing an end to a contentious antitrust lawsuit leveled by the U.S. Justice Department last year.
In a ruling handed down by U.S. District Judge Richard Leon, AT&T is allowed to acquire Time Warner and take control of its substantial cache assets with no conditions applied to the sale, reports CNBC.
The deal will give the telecom full control over Time Warner's cable channels, which include CNN, TBS and HBO, and film studio Warner Bros. AT&T intends to complete the merger by June 20, one day prior to the deal's expiry.
In late 2017, the DOJ sued to block AT&T's merger bid over concerns that the combined entity would pose a "major" threat to competitors. Specifically, the government argued three main points relating to leverage over industry rivals, potential harm to streaming services and possible access restrictions imposed on certain cable channels.
Leon found for AT&T on all claims, saying the DOJ failed to meet the burden of proof that the acquisition would result in fewer choices for consumers and higher prices for content providers. The jurist also warned against an appeal, an option for the Justice Department after the six-week trial.
"I hope the government has the wisdom and courage" not to seek a stay, Leon said, according to CNN.
AT&T, which owns satellite TV service DirecTV, initially announced intent to buy Time Warner in 2016. An unconventional merger, AT&T said it seeks not only to diversify revenues, but also bolster its streaming operation by bundling entertainment offerings with mobile services. The company currently provides similar incentives with DirecTV.
Leon's decision is expected to spur a wave of similar merger attempts likely to raise the DOJ's hackles. Comcast, for example, is looking to disrupt Disney's announced deal with 21st Century Fox with a bid of its own.
Prior to the merger announcement last year, Apple was rumored to have held preliminary talks with Time Warner over a potential tie-up, but those discussions failed to bear fruit.
In a ruling handed down by U.S. District Judge Richard Leon, AT&T is allowed to acquire Time Warner and take control of its substantial cache assets with no conditions applied to the sale, reports CNBC.
The deal will give the telecom full control over Time Warner's cable channels, which include CNN, TBS and HBO, and film studio Warner Bros. AT&T intends to complete the merger by June 20, one day prior to the deal's expiry.
In late 2017, the DOJ sued to block AT&T's merger bid over concerns that the combined entity would pose a "major" threat to competitors. Specifically, the government argued three main points relating to leverage over industry rivals, potential harm to streaming services and possible access restrictions imposed on certain cable channels.
Leon found for AT&T on all claims, saying the DOJ failed to meet the burden of proof that the acquisition would result in fewer choices for consumers and higher prices for content providers. The jurist also warned against an appeal, an option for the Justice Department after the six-week trial.
"I hope the government has the wisdom and courage" not to seek a stay, Leon said, according to CNN.
AT&T, which owns satellite TV service DirecTV, initially announced intent to buy Time Warner in 2016. An unconventional merger, AT&T said it seeks not only to diversify revenues, but also bolster its streaming operation by bundling entertainment offerings with mobile services. The company currently provides similar incentives with DirecTV.
Leon's decision is expected to spur a wave of similar merger attempts likely to raise the DOJ's hackles. Comcast, for example, is looking to disrupt Disney's announced deal with 21st Century Fox with a bid of its own.
Prior to the merger announcement last year, Apple was rumored to have held preliminary talks with Time Warner over a potential tie-up, but those discussions failed to bear fruit.
Comments
People with skills in building pipes are no good at making what goes through them. The same reason Apple TV shows have been lame to date. Expertise in computing doesn’t translate well into arts.
Stock up on your vasoline...
Why? What does buying a telecommunications company do for Apple? Its not like Apple can't sell phones through all of its carriers. I think owning a company like T-Mobile would only get them in trouble down the road with lawsuits from other telecommunications companies among others.
Step #2 -- Merge cable operators with content providers so you get fewer choices. But, for anything else, you pay more for slower speeds.
Everybody wins! Well, everybody who counts... (meaning the 1%)
Meanwhile the so called free marketers are having orgasms -- while their precious free market is being trashed. Such fools!
Meanwhile the big telecom companies in canada charge 50% more than the rest of the world.
Stock up on your vasoline...
Feel free to bring an antitrust suit to the courts. If there’s one thing we don’t need, it’s the 6 media companies who create 100% of Western media to be reduced even further. If you’re dumb enough to think you can vote anyone into government who will actually stop that, feel free to try, I guess.
No, you’re just literally brainwashed (by the definition of the word) and know nothing about anything you’re saying other than what you were told to repeat without question.
EDIT: At least we know that things will be business as usual in some places.