Judge clears AT&T takeover of Time Warner

AT&T-Time Warner Decision: Either Way, Media Is Ailing

AT&T-Time Warner Decision: Either Way, Media Is Ailing

AT&T has demonstrated considerable optimism about the deal in recent weeks.

"Allowing this merger to proceed raises serious concerns for consumers and the future of American media, and also sends a troubling signal to others that it's open season for vertical mergers that could allow a company to raise the cost of essential products and services that its rivals need to compete, leading to higher costs for consumers and less innovation", Klobuchar said.

The AT&T and Time Warner merger has officially been approved.

When the trial ended, Judge Leon suggested the parties consider some remedies both could deal with depending on how he ruled.

Leon said the government's case fell short on all counts and warned against seeking to delay the deal with an appeal saying that would cause irreparable harm to the companies. "We continue to believe the pay-TV market will be less competitive and less innovative as a result of the proposed merger between AT&T and Time Warner". AT&T will now have a major foothold in the media industry. He issued his decision in a closed-door room with reporters, and reportedly urged the government not to seek a stay.

The U.S. Department of Justice has lost its antitrust lawsuit to bar the planned AT&T and Time Warner merger, according to Business Insider.

"AT&T is buying Time Warner, and thus CNN", Trump said at a campaign rally in 2016. In February, Rep. Elijah E. Cummings, the ranking member of the House Committee on Oversight and Government Reform, and Rep. Gerald E. Connolly, the ranking member of the Subcommittee on Government Operations, sent a letter to Attorney General Jeff Sessions asking for documents and emails between the Justice Department and the White House about the decision to sue AT&T and Time Warner. It's unusual for the Justice Department to argue that a vertical merger of two companies that aren't direct competitors would limit competition, but the effect that the merger will have on the telecoms and entertainment industry is significant.

U.S. District Judge Richard Leon green-lit the merger without adding major conditions to the deal.

"This will be a blockbuster summer for media mergers", said Mary Ann Halford, senior adviser to OC&C Strategy Consultants.

The government estimated costs to industry rivals, such as Charter Communications Inc, would increase by $580 million a year if AT&T owned Time Warner. For example, Comcast is reportedly eager to gobble up some of 21st Century Fox's assets. Comcast, which had earlier bid for the Fox assets but lost out to Disney, is expected to renew its pursuit now that AT&T has won.

The Time Warner deal is a crucial achievement for Stephenson, who views AT&T as competing with Google, Facebook, Netflix and other Silicon Valley giants. AT&T is known to most consumers as a telecom company, offering cable, internet and phone services, but this is just the latest in a line of mergers from such companies trying to break into the media landscape.

Outside of court, however, critics of the lawsuit pointed to Trump's frequent criticism of CNN, which is owned by Time Warner.

The Justice Department is not likely to be put off by the loss, said Amy Ray of the law firm Cadwalader, Wickersham & Taft LLP, noting it had prevailed in stopping other mergers between rivals.

Recommended News

  • China urges 'full denuclearization' as Kim, Trump meet

    China urges 'full denuclearization' as Kim, Trump meet

    The Kim dynasty, under Kim's father, Kim Jong Il, signed a treaty with the U.S.in 1994, known as the Agreed Framework. Many believe Trump expects to come out with a deal on denuclearisation but North Korea doesn't.
    Elon Musk Hosts Flamethrower Party While Tesla Burns

    Elon Musk Hosts Flamethrower Party While Tesla Burns

    Billionaire space exploration hobbyist and business magnate Elon Musk held the hottest party in Los Angeles over the weekend. The electric sled would allow for cars to be transported at 150 miles per hour through the tunnel, Musk has said.
    Trump leaves G7 meet in shambles, calls Trudeau 'dishonest liar'

    Trump leaves G7 meet in shambles, calls Trudeau 'dishonest liar'

    After the conclusion of the summit, Trump again said he would not allow other countries to impose barriers on the United States. Kudlow, in a separate TV appearance, said Trudeau was "polarizing" and "really kind of stabbed us in the back".
  • Warriors strangely roast Kevin Durant at championship parade

    Warriors strangely roast Kevin Durant at championship parade

    Considered a basketball lifer, Durant had aspirations to be a professional basketball player since he was 8 years old. Durant has said the same to business partner Rich Kleiman, though he said he would "believe it when it happens".
    E3 2018: Beyond Good and Evil 2 Cinematic, And Trailer Breakdown

    E3 2018: Beyond Good and Evil 2 Cinematic, And Trailer Breakdown

    The game is a prequel set at the end of the 24 century and will see the return of classic characters like Jade and Pey'j. Beyond Good and Evil 2 is an action-adventure role-playing title that you can experience alone or in co-op.
    DUP to back Theresa May over Brexit amendments

    DUP to back Theresa May over Brexit amendments

    This means MPs and Lords could tell May to go back to negotiating table and get something better. The government is most vulnerable on the issue of a " meaningful vote ".
  • Super Mario Party - Official Game Trailer - Nintendo E3 2018

    Super Mario Party - Official Game Trailer - Nintendo E3 2018

    From the Switch screens, it looks like both Switches are playing the same Super Mario Party game which tells us two things. Ultimate will feature every single character which has previously appeared in a series for one massive roster.
    Emotional Dennis Rodman says Kim trying to change North Korea

    Emotional Dennis Rodman says Kim trying to change North Korea

    In 2014, Mr Trump tweeted dismissively about the possibility that he and Rodman would someday travel to North Korea together . Rodman talked about "falling in love" with the people and culture of North Korea, and described Kim as "a good friend".

    Halo Infinite revealed with stunning trailer at E3 2018

    We learned a whole bunch about Fallout 76 , including a new trailer , Rage 2, Starfield and new content for Prey called Mooncrash. This is not confirmed, and a Microsoft representative declined to comment when approached by GameSpot.
  • Tesla to lay off 9% of workers as part of restructuring plan

    Tesla to lay off 9% of workers as part of restructuring plan

    At the same time, the job cuts announced today will reduce Tesla's costs, allowing the company to reach profitability more easily. Tesla started 2018 with about about 37,000 employees globally and has hired thousands of employees since then.
    New Spider-Man Gameplay Trailer Brings the Baddies

    New Spider-Man Gameplay Trailer Brings the Baddies

    While a Sinister Six movie may or may not be happening (most likely not), at least they'll have the Spider-Man video game. The combat was slow, deliberate and violent, with the katana scything through body parts left, right and centre.
    Ariana Grande, Pete Davidson engaged after dating for just weeks

    Ariana Grande, Pete Davidson engaged after dating for just weeks

    Let us know your thoughts in the Facebook comments! Ariana then took to Instagram with a cheeky response. The singer has been replying to fans tweeting her about a potential wedding to comedian Pete Davidson .

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.