AT&T Buys Time Warner in Multi-Billion Dollar Deal
Published on June 16, 2018
- AT&T wins a long-running court battle to complete the purchase of Time Warner finally.
- The $85 billion deal sets a new precedent and may allow for similar mergers and acquisitions to take place in the future.
- AT&T promises that it will bring a “fresh approach” to the streaming and media industries.
The long-running saga of AT&T’s efforts to buy Time Warner finally came to an end on Thursday. According to CNN Money, the $85 billion deal passed through after AT&T gained the court’s approval, despite anti-competition objections raised by the US government.
The deal was almost two years in the making, as AT&T initially announced their intentions back in October 2016. Since then, a protracted legal battle had prevented the deal from going through. The crux of the argument against the deal centered on regulatory concerns. The US Justice Department argued that the deal would cause issues for consumers, as it would mean less competition in the streaming sector.
This lack of competition, according to the Justice Department, would result in consumers facing higher prices and may give the merged companies the power to put its competitors out of business.
For their part, AT&T argued that the deal will allow them to compete with the likes of Netflix and other major streaming providers.
With the acquisition, AT&T gain control over all of the major brands that fall under the Turner banner. This includes major television channels, such as HBO, as well as large distributors, such as Warner Bros.
According to the NY Times, AT&T’s CEO, Randall Stephens, claims that the purchase represents a fresh start for the industry. He says: “We're going to bring a fresh approach to how the media and entertainment industry works for consumers, content creators, distributors, and advertisers.”
Nobody’s certain yet what this means in the long run. However, AT&T’s success in the court battle sets a precedent that paves the way for similarly large mergers and deals in the future.
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