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Is there any evidence that the president's view on this is influencing the antitrust review? And we know that President Trump is a big critic of CNN. SHAPIRO: There have been reports that the Justice Department was pushing AT&T to do that. SHAPIRO: You mentioned that AT&T could sell off a property, such as CNN. And it is unusual for these cases to actually go to trial. To be clear, AT&T has said that they have no such intention.
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Theoretically, AT&T could also agree to make some concessions, to sell maybe CNN or Turner Broadcasting or DirecTV to appease the government. So what it means is that the fate of the merger now rests with a judge at district court in the District of Columbia. SHAPIRO: Does the Justice Department's objection necessarily mean that the merger is dead, or could it still go through? Well, in this case, the Trump administration is essentially siding with some consumer groups and liberal senators who have fought against this merger. It also throws off this ideological argument about antitrust reviews that conservative administrations tend to be more lenient on consolidation. AT&T's general counsel has called this decision to sue a radical and inexplicable departure from decades of antitrust precedent. In the past, these kinds of deals go through. These two companies do not directly compete, which is the case that they've been making. SELYUKH: So what is unusual is that this merger is what's called a vertical merger. SHAPIRO: How unusual is it for the Justice Department to go to court to block a merger like this one? To give you an example of that latter one, if I'm a startup streaming company and I want to get a show from TBS, AT&T theoretically could charge me more. And to stop it, they are taking the companies to court.Īnd the crux of their case against the merger is essentially that combined together, AT&T and Time Warner would control so much of both what people watch and how they watch it, that they could raise prices for both consumers and their competitors. They do not want the merger to go through. All it needed was the Justice Department approval. And the merger of the two has been pending for about a year. It has channels like HBO, TNT, TBS, of course CNN.
Att text message transcripts 2017 tv#
As you were pointing out, AT&T already owns satellite TV provider DirecTV.
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SELYUKH: So it was supposed to be a massive shake-up. SHAPIRO: Give us the background on this merger. NPR's Alina Selyukh is here to walk us through this. And now, as the case heads to court, this could set up one of the largest antitrust showdowns in many years. This was slated to be a massive merger, a deal worth $85 billion. The Department of Justice announced this afternoon that it will sue to block AT&T's purchase of Time Warner.
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