Published By : 13 Jun 2018 | Published By : QYRESEARCH
AT&T will soon own Time Warner and the rest of its empire including DC Comics, Warner Brothers, CNN, and HBO. On Tuesday, the purchase of US$85.0 bn by the telecommunications behemoth was given the green signal by a federal judge. Last November, a suit was filed against this giant purchase by the Department of Justice, asserting that it would leave fewer choices for consumers and cause television prices to soar. However, the argument was rejected by Richard J. Leon, U.S. District Judge who allowed the purchase to move forward without conditions.
David McAtee, general counsel of AT&T indicated that the company is likely to close the deal on or before June 20, 2018, so that it could offer more innovative, mobile, and affordable video entertainment to consumers.
AT&T-Time Warner Deal Considered as Vertical Merger
The AT&T-Time Warner merger is said to unite the second-largest provider of pay-TV, third-largest provider of home broadband, and second-largest provider of mobile phone of the U.S. It will also include Turner Broadcasting owning rights to major-league baseball and NBA playoffs and March Madness. Moreover, the deal will bring a deep well of content under AT&T’s roof, so the question that arises is whether the company would reserve the media conglomerate’s content for its own services.
The deal may sound as a good news to potential and pending mergers such as the Tribune Company’s purchase by Sinclair Broadcast Group, Disney and Comcast’s bids for 21st Century Fox, and acquisition of Sprint by T-Mobile.