AT&T has no intention of selling CNN | Update - DOJ sues to block AT&T/TW merger

[Jim K Global Moderator]

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AT&T has "no intention" of selling CNN despite the Justice Department's demand the company sell it in order to approve the Time Warner acquisition, according to CEO and chairman Randall Stephenson.

 

"Until now, we've never commented on our discussions with the DOJ," Stephenson said in a statement. "But given DOJ's statement this afternoon, it's important to set the record straight. Throughout this process, I have never offered to sell CNN and have no intention of doing so."

 

Sources told CNBC that the Justice Department wants AT&T to sell Turner Broadcasting, which includes CNN, or DirecTV as condition for approval of the $85 billion AT&T-Time Warner deal.

 

In addition, DOJ sources told NBC News AT&T offered selling CNN during a meeting on Monday regarding the proposed merger. The DOJ's Antitrust Division "flatly rejected it" because it would not solve potential anti-competition issues. Justice Department officials also told Reuters there are multiple ways to solve issues regarding the AT&T - Time Warner deal, but selling CNN would not resolve concerns.

 

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Stephens said the AT&T acquisition of Time Warner is a "vertical integration" merger across industries. He noted that the government has not blocked a "vertical" deal in more than 40 years.

 

/snip

Full article at CNBC

 

Will be interesting if this goes before court...though I would rather these big mergers not happen anyway (from a consumer standpoint).

[Jim K Global Moderator]

AT&T Statement on Latest Developments in Proposed Acquisition of Time Warner, Inc.

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DALLAS, Nov. 20, 2017 /PRNewswire/ -- The following is attributed to David R. McAtee II, Senior Executive Vice President and General Counsel, AT&T Inc.:

 

"Today's DOJ lawsuit is a radical and inexplicable departure from decades of antitrust precedent.  Vertical mergers like this one are routinely approved because they benefit consumers without removing any competitor from the market. We see no legitimate reason for our merger to be treated differently.  

 

"Our merger combines Time Warner's content and talent with AT&T's TV, wireless and broadband distribution platforms.  The result will help make television more affordable, innovative, interactive and mobile.  Fortunately, the Department of Justice doesn't have the final say in this matter.  Rather, it bears the burden of proving to the U.S. District Court that the transaction violates the law.  We are confident that the Court will reject the Government's claims and permit this merger under longstanding legal precedent."
AT&T