Whats New?

There may be trouble in paradise for the AT&T and Time Warner #att #timewarner

Last week AT&T purchased Time Warner for $85.4 billion.  Before the deal is made official, AT&T must resolve a major federal lawsuit.

On Wednesday, the Department of Justice sued AT&T’s DirecTV unit, “alleging it was ‘the ringleader’ in unlawful efforts to prevent widespread carriage of the SportsNet LA television channel owned by the Los Angeles Dodgers.” The Justice Department will also review the Time Warner deal making events rather murky, begging the quesiton;

How will the recent lawsuit affect AT&T’s attempt to buy Time Warner?

The unlawful activity AT&T is accused of took place in July 2015 and the company believes the allegations will not directly affect regulatory approval of Time Warner. Many public figures strongly disagree with this assertion and believe the deal would make AT&T too powerful.

Both Presidential candidates have voiced their concerns about the deal. Donald Trump has said his administration would block the deal and Hillary Clinton has repeated the merger is raising concerns and questions. The Senate Judiciary antitrust subcommittee has scheduled a hearing for Dec. 7 after the Committee Chairman Charles Grassley called for a “robust review.”  

Matt Wood, policy director of Free Press, also voiced his concerns. “AT&T and DirecTV had too much power over the pay-TV, Internet and content markets even before their multibillion merger closed last year.”

-Ray Hayes

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: