U.S. DOJ to halt AT&T’s bid to acquire mass media firm, Time Warner
Date: 2017-11-21   Author: Dhananjay Punekar  Category: #news

In a major turn of the events witnessed across the telecom sector, the U.S. department of justice (DOJ) has filed a legal suit to halt Time Warner’s acquisition by AT&T, citing the reason that the merger will reduce competition and result in increased costs. According to the Department of Justice, the acquisition will help the latter gain power, compelling its competitors to pay large amount of currency for Time Warner’s content. It also stated that the merger will put brakes on the evolution of new digital television services and will only help in serving the interests of AT&T.

On the other hand, AT&T has decided to fight back by terming the strategic move as a departure from the regular U.S anti-trust practice. As per reliable sources, the decision to block the merger was based on the political influence with the current U.S. president objecting to the acquisition during his election campaign in 2016.

Last year, the telecom firm had declared its decision to purchase Time Warner at USD 85 billion. The main objective behind the acquisition was to pack video entertainment with its mobile service. The latter owns HBO, Turner Broadcasting, and Warner Bros., which can assist the former in fulfilling its goals. AT&T in addition, has also claimed that the acquisition will benefit the consumers as it will be able to provide improved access to premium content on the latter’s mobiles.

Key officials of AT&T have claimed that the U.S. antitrust authorities usually approve vertical mergers such as AT&T’s acquisition of Time Warner as these deals have proved to be advantageous for the customers without reducing market competition. Earlier, the U.S. media had reported that the U.S. Department of Justice had advised AT&T to sell a few of its assets as a pre-condition for getting approval. Apparently, the other alternatives also comprised selling the rights of Turner Broadcasting or the satellite network services.  



About Author


Dhananjay Punekar

Dhananjay Punekar

Dhananjay currently works as a content writer at AlgosOnline. A post graduate in mathematics as well as business administration, he worked as a process executive in Infosys BPO Limited before switching his professional genre. Following his childhood passion, he opted fo...

Read More

More from Dhananjay


Post Recommendents

AGL remains stubborn on Liddell closure, rejects Alinta’s purchase bid
Author: Dhananjay Punekar

AGL Energy Limited, a public listed firm in Australia involved in both the production & retailing of electricity & gas, has apparently rejected Alinta Energy’s USD 250 million bid for the Liddell power st...


China scraps anti-subsidy probe to resolve trade dispute with U.S.
Author: Dhananjay Punekar

China has reportedly done away with its anti-dumping and anti-subsidy investigation against the sorghum imports from the U.S., with an intention to resolve its trade conflicts with the U.S. According to the Ministry of...


Brisbane City Council votes to ban single-use bottles & plastic straws
Author: Dhananjay Punekar

The Brisbane City Council, one of Australia’s largest metropolitan jurisdictions, has apparently announced to become the most environment friendly council after it pledged to ban single-use plastic bottles, heliu...