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Federal judge clears AT&T's $85 billion bid for Time Warner with no conditions
CNBC ^ | 06/12/2018 | Sara Salinas

Posted on 06/12/2018 1:49:31 PM PDT by Red Badger

AT&T announced that it was buying Time Warner for $85.4 billion in October 2016. The Justice Department sued last year to block the merger, citing concerns that AT&T, owner of satellite television provider DirecTV, could charge rival distributors more for Time Warner content, resulting in higher prices for consumers. The outcome of the trial could have implications for future deals in the telecom and media industries, as well as vertical mergers, where companies combine with their suppliers.

A federal judge said Tuesday that AT&T's $85.4 billion purchase of Time Warner is legal, clearing the path for a deal that gives the pay-TV provider ownership of cable channels such as HBO and CNN as well as film studio Warner Bros.

U.S. District Court Judge Richard Leon did not impose conditions on the merger's approval.

Shares of Time Warner jumped nearly 5 percent in extended trading. Shares of AT&T dropped more than 2 percent.

The Justice Department sued last year to block the merger, citing concerns that AT&T, owner of satellite television provider DirecTV, could charge rival distributors more for Time Warner content, resulting in higher prices for consumers. But AT&T has countered that the logic doesn't hold up since the point of owning content is to get widespread distribution, which brings in affiliate fees and advertising revenue.

The decision comes after a six-week trial.

AT&T, also the No. 2 wireless carrier in the U.S., said it was buying Time Warner in October 2016 to diversify its revenues and also become a media powerhouse that could attract consumers by bundling entertainment with mobile service. CEO Randall Stephenson has said the deal would help AT&T compete against tech giants like Amazon and Netflix, which are investing more in content.

The outcome of the trial will likely have implications for future deals in the telecom and media industries, as well as vertical mergers, where a company buys its supplier. Comcast has been eyeing a similar merger to combine production and distribution in a competing bid for Foxand was preparing to announce an offer as soon as Wednesday if Leon ruled in favor of AT&T in the trial, people familiar with the matter told CNBC.


TOPICS: Breaking News; Business/Economy; Government; US: Georgia; US: New York
KEYWORDS: amazon; antitrust; att; clintonnonnews; cnbc; cnn; comcast; directv; fox; margarettalev; merger; netflix; timewarner; trustsessionslol
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1 posted on 06/12/2018 1:49:31 PM PDT by Red Badger
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To: Red Badger

Back to the rise of the monopolies in the ever cyclical world of business and law.


2 posted on 06/12/2018 1:51:17 PM PDT by Secret Agent Man ( Gone Galt; Not averse to Going Bronson.)
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To: Red Badger

Sessions screws up again...


3 posted on 06/12/2018 1:52:46 PM PDT by rrrod (just an old guy with a gun in his pocket)
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To: Red Badger

Boooooo!


4 posted on 06/12/2018 1:53:11 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: Secret Agent Man

Monopolies=Easier for the government to control.


5 posted on 06/12/2018 1:53:36 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: Red Badger

Not good, in my opinion.


6 posted on 06/12/2018 1:53:45 PM PDT by clintonh8r (Truth is hate speech to those who hate the truth.)
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To: rrrod

Not yet......

Sessions will decide if the judge is wrong and if an appeal is necessary


7 posted on 06/12/2018 1:54:01 PM PDT by bert ((K.E. N.P. N.C. +12 ..... Greetings Jacques. The revolution is coming))
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To: Secret Agent Man

simple fix:

Make ownership of stock in any corporation legal only for living, breathing human beings and then limit their percentage of ownership to no more than 1.5%

if you want own a business outright, start one from the ground up.


8 posted on 06/12/2018 1:54:46 PM PDT by txnativegop (The political left, Mankinds intellectual hemlock)
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To: bert

Sessions is too busy trying to find somebody smoking a joint.


9 posted on 06/12/2018 1:55:09 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: dfwgator

You have regurgitated the group think


10 posted on 06/12/2018 1:56:26 PM PDT by bert ((K.E. N.P. N.C. +12 ..... Greetings Jacques. The revolution is coming))
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To: dfwgator
Monopolies=Easier for the government to control

And bigger bribes.
11 posted on 06/12/2018 1:57:08 PM PDT by Little Ray (Freedom Before Security!)
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To: bert

Well the results certainly seem to suggest it.


12 posted on 06/12/2018 1:58:43 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: FReepers

Click The Pic To Donate

Support FR, Donate Monthly If You Can

13 posted on 06/12/2018 2:01:09 PM PDT by DJ MacWoW (The Fed Gov is not one ring to rule them all)
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To: dfwgator

Remember if you will...... you have no clue about what the DOJ is actually doing

You like riding the band wagon and making unwarranted assertions


14 posted on 06/12/2018 2:01:27 PM PDT by bert ((K.E. N.P. N.C. +12 ..... Greetings Jacques. The revolution is coming))
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To: Red Badger

They should just combine all large corporations into one big company and get it over with. /s


15 posted on 06/12/2018 2:02:39 PM PDT by wideminded
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To: Secret Agent Man

AT&T puts itself back together like the Terminator T-2000......................


16 posted on 06/12/2018 2:03:38 PM PDT by Red Badger (When Obama and VJ go to prison for treason, will Roseanne get her show back?...)
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To: dfwgator

Allegedly there are 35+ thousand sealed indictments ready to go? This is nonsense and I would be happy to hear there was 35.


17 posted on 06/12/2018 2:04:23 PM PDT by arrogantsob (Shttps://www.freerepublic.com/perl/post?id=3662210,41ee "Chaos and Mayhem" at Amazon.com)
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To: wideminded


"And our children will live, Mr. Beale, to see that perfect world in which there's no war or famine, oppression or brutality - one vast and ecumenical holding company, for whom all men will work to serve a common profit, in which all men will hold a share of stock - all necessities provided, all anxieties tranquilized, all boredom amused."
18 posted on 06/12/2018 2:04:37 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: Red Badger

Lol, good one.


19 posted on 06/12/2018 2:05:16 PM PDT by arrogantsob (Shttps://www.freerepublic.com/perl/post?id=3662210,41ee "Chaos and Mayhem" at Amazon.com)
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To: Red Badger

Crapcast and Fox merging is a different combination because of Xfinity and the cable operations.


20 posted on 06/12/2018 2:05:33 PM PDT by kaktuskid
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