AT&T Acquires Time Warner for $85 billion dollars (who also owns CNN)

[shermantanker]

 

Quote

In what could be one of the most consequential antitrust decisions in recent memory, a judge has ruled that AT&T and Time Warner can merge, despite a lawsuit from the Justice Department arguing that the deal would be anti-competitive.

Pending a possible appeal, the decision means the public will soon see a new telecom behemoth looming over the landscape, combining AT&T’s paid-TV subscribers with Time Warner’s content, which includes HBO, CNN, and Warner Bros. The federal judge ruling on the case did not impose any conditions on the deal as part of the decision, handing AT&T a clear victory in the dispute, while telegraphing a green light to other companies planning similar deals.

 

But beyond its immediate consequences, the ruling may have been more closely watched for its effect on future deals. The battle has been seen as a bellwether for other vertical mergers, where a distributor and content producer are looking to combine forces. Now that the AT&T-Time Warner deal has been given a stamp of approval, it’s all but certain more deals are on the way. Those agreements were lining up even before today’s decision: Comcast reportedly planned to formally make an offer to buy 21st Century Fox the day after the ruling, if the judge in the AT&T case approved. The Walt Disney Company is also in the bidding for the company.

Quote

The Justice Department argued that the major new entrant would be powerful and ubiquitous enough to dictate unfair terms in the marketplace, and it used expert testimony to highlight potential economic perils. AT&T, for its part, has said the merger is necessary for the company to compete against tech industry players and would even result in better terms for consumers.

Quote

Judge Richard Leon did not make it obvious during the trial how he would rule, and any of a number of scenarios were possible. While he might have approved or blocked the deal outright, he also could have made a conditional decision, requiring AT&T to make some sort of concession as a requirement for the merger. Instead, the judge allowed the decision to move through without conditions.

 

It’s unclear whether the Justice Department will appeal the decision.

Well this sucks. This kind of vertical integration between and ISP and major content provider is the last thing we need, and all this on the cusp of Net Neutrality being killed off. It's a match made in hell. Hopefully the the justice department pushes for an appeal, otherwise this is going to turn into a shit show in the not too distant future.

 

The Verge

[Deus Voltage]

 

Well it finally happened. Here's a direct quote from MSNBC (who's owned by Comcast)

Quote

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.

Well I don't live in the U.S, but I am certainly curious on how this will work out for people who are subscribed to HBO but have a different internet provider. At any rate, CNN seems pleased, at least implicitly:

 

Quote

AT&T and Time Warner said they need to combine in order to better compete with Facebook, Amazon, Apple, Netflix and Google, companies that are already powerhouses in the content game. AT&T and Time Warner say that by coming together they can create synergies of data and information that will help them make better content and sell more targeted ads, which they claim could ultimately help lower prices for consumers.

It's all about that targeted ad money. Well, that much is predictable at least. Also, "lower prices for customers"? I very much doubt that the future will be so kind.

 

Edit1: Thanks to Lurick@ for providing clarification: AT&T acquired the media company of Time Warner, not the ISP (which was bought by charter 2 years previously)

 

Other sources to check:

 

The Verge:

https://www.theverge.com/2018/6/12/17452870/att-time-warner-merger-decision-judge

 

Wall Street Journal:

https://www.wsj.com/articles/judge-is-set-to-decide-whether-at-t-and-time-warner-can-merge-1528832942

 

The New York Times:

https://www.nytimes.com/2018/06/12/business/dealbook/att-time-warner-trial-antitrust-ruling.html

 

Good? Bad? Really bad? Discuss.

 

 

 

 

[ItsMitch]

Why this so important? Why should I actually care that a company is buying another company? 

[Lurick]

7 minutes ago, Deus Voltage said:

-snip-

AT&T is buying Time Warner media company, not Time Warner the ISP. That was bought by Charter a couple years ago.

 

Edit:

Just to clarify for anyone in general who might not know. Not directed at the OP but I see some confusion happen every now and then

[Cole5]

Anti trust when?

[dtaflorida]

14 minutes ago, SC2Mitch said:

Why this so important? Why should I actually care that a company is buying another company? 

It doesn't matter to you, you're not in the US. 

 

For those in the US, it could mean higher prices??? On content? Maybe?

 

Comcast(ISP) did it, they bought NBC(media). Now AT&T(ISP) is buying Time Warner(media). The basis of opposition is that Comcast exploited their vertical integration and raised prices? 

 

I think this merger sorta creates competition to Comcast now that another company has become the same kind of behemoth... only time will tell if capitalism will work here. I'm thinking this is bad for Comcast now they have a competitor on the same playing field, so I'm sure they were lobbying to block AT&T and Time Warner from merging.

[Deus Voltage]

2 minutes ago, SC2Mitch said:

Why this so important? Why should I actually care that a company is buying another company? 

The implications of this event are significant to say the least.

I am unsure if you've read Manufacturing Consent (1994) by Chomsky or read empirical data released by Stanford University (2016) regarding the mainstream media's ideological similarities.

At any rate, the merger between a telecommunication conglomerate and a seemingly "truth telling" news organization (as claimed by Jeff Zucker in a broadcast by New York Hour) is a great cause for worry. From internet speed, to the integrity of information released by the news organization and more importantly, outreach and ad money.

[Lurick]

6 minutes ago, SC2Mitch said:

Why this so important? Why should I actually care that a company is buying another company? 

It's about the consolidation of media companies under fewer and fewer people. There used to be something like 50 different, independently controlled, media/news companies in the US many many years back. Now I think we're down to 3 or 4 which should be cause for concern just from a perspective of access to the content.

 

There are rumors of Disney buying up more media companies now that this has been approved and more consolidation happening at a faster rate. At this rate would could see 2 global media/news organizations within the country soon enough.

[Deus Voltage]

5 minutes ago, Lurick said:

AT&T is buying Time Warner media company, not Time Warner the ISP. That was bought by Charter a couple years ago.

 

Edit:

Just to clarify for anyone in general who might not know. Not directed at the OP but I see some confusion happen every now and then

Ah interesting! So I may be wrong here, and I welcome the correction, but does that mean that AT&T now has Charter, or what exactly? I will be very happy to get some clarification on this.  

[Lurick]

Just now, Deus Voltage said:

Ah interesting! So I may be wrong here, and I welcome the correction, but does that mean that AT&T now has Charter, or what exactly? I will be very happy to get some clarification on this.  

Time Warner Cable, the ISP side, was bought out by Charter and the Time Warner media side was left as a standalone entity after that happened so thankfully AT&T doesn't own Charter (yet)

[mr moose]

USA land of the free   corporate dictator overlords.

[Canada EH]

5 hours ago, mr moose said:

USA land of the free   corporate dictator overlords.

You should start a lobby group and think tank company!

[I-r0k]

I feel like in 20 years your ass will be owned by some major corporation. 

[mr moose]

1 hour ago, Canada EH said:

You should start a lobby group and think tank company!

I hate lobby groups, they are as idealistic as corporations are dictatorial.