Appeals court approves AT&T's $81bn Time Warner acquisition

By hotmaillogin

The United States Court of Appeals in Washington DC announced this week that it had cleared  AT&T’s takeover of Time Warner. The deal was completed in Q1 2018, with the approval of a federal judge. However, in an unexpected move, the Trump administration launched an antitrust lawsuit against the telecommunications and media giant, claiming that AT&T’s takeover of Time Warner would hurt competition, limit choices and increase prices for consumers to watch TV and movies.

The government’s opposition to the merger went against legal precedent, which has traditionally favored vertical mergers - mergers among companies that don’t directly compete. Following the incorporation of Time Warner into AT&T, the parent company now controls CNN, HBO, the Warner Bros. movie studio, “Game of Thrones,” sports programming and other shows.

“The government failed to meet its burden of proof” for its theory that costs for Time Warner’s Turner Broadcasting content would increase after the merger, mainly through threats of programming “blackouts,” the judges wrote in response.

SEE ALSO: 

According to the associated Press: “The idea behind the merger was to help AT&T — which claims about 25 million of the 90 million U.S. households that are pay TV customers — compete better with online rivals like Netflix, YouTube and Hulu.”

Matthew Cantor, an attorney focusing on telecom antitrust matters at Constantine Cannon in New York said that ““It seems to me that political considerations played into this. It’s odd that the Justice Department has gone after this merger as its principal merger case. ... This was a very tough case. It’s very hard to challenge a vertical merger.”

Donald Trump has repeatedly clashed with CNN over social media, even promising to “kill” the deal in 2016.

Share
Share

Featured Articles

Amelia DeLuca, CSO at Delta Air Lines on Female Leadership

Driving decarbonisation at Delta Air Lines, Chief Sustainability Officer Amelia DeLuca discusses the rise of the CSO and value of more women in leadership

Liz Elting – Driving Equality & Building Billion-$ Business

Founder and CEO Liz Elting Turned Her Passion into Purpose and Created a Billion-Dollar Business While Fighting for Workplace Equality – and Winning

JPMorgan Chase: Committed to supporting the next generation

JPMorgan has unveiled a host of new and expanded philanthropic activities totalling US$3.5 million to support the development of apprenticeship programmes

How efficient digital ecosystems became business critical

Technology & AI

Mastercard: Supporting clients at a time of rapid evolution

Digital Strategy

Why Ceridian has boldly rebranded to Dayforce

Human Capital