AT&T is by far the largest telecommunications corporation in the United States, with yearly revenues of over
Question:
AT&T is by far the largest telecommunications corporation in the United States, with yearly revenues of over $180 billion. In 2017, the company sought to buy out Time Warner Inc., a huge media conglomerate that owns companies like Warner Bros. Entertainment and HBO.
Because AT&T and Time Warner each own large portions of the telecommunications and media markets, the proposed merger caused concern for the Justice Department. According to the department’s investigation, the merger would hinder the new company’s rivals by forcing them to pay hundreds of millions of dollars more per year for the right to distribute the numerous networks owned by Time Warner.
The new company could also use its increased power to slow the industry’s transition to new video distribution models, thus limiting consumer choice and raising prices. However, it was ultimately decided that the merger would not result in an anticompetitive market; thus, the merger was allowed. What aspects of merger law are included in this case?
Step by Step Answer:
Dynamic Business Law
ISBN: 9781260733976
6th Edition
Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs