“AT&T’s $85.4 billion acquisition of Time Warner would transform it from a landline, wireless and satellite TV company into one of the most important media gatekeepers in the country, giving it a strong financial incentive to use its programming to hammer competitors.
The company agreed to pay Time Warner, which owns Warner Bros. studios, HBO, CNN, TNT and other TV channels, a 35 percent premium over its market value. AT&T executives say the deal would benefit its customers by leading to new innovations. But it would only be logical for the company to use Time Warner’s trove of movies and TV programming to keep and attract subscribers to AT&T while making it harder or more expensive for competing telecom and streaming companies to get access to that content.”
Source: Promises, Promises From AT&T – The New York Times
I am against this deal, for all the reasons above, and because I think AT&T is a horrible company.
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Bruce Rozenblit is a trusted commenter Kansas City, MO 13 hours ago
“I viewed an extensive interview today on CNN.com with both CEO’s. The AT&T CEO kept using the words “mobile subscriber” over and over. He states that the future of delivering video is over phones and tablets, not the living room TV. OK now! It all fits together. AT&T has a huge base of wireless subscribers. Think of the increase in cash flow, revenue, if they start selling those customers video programming. Now, the plot thickens. AT&T is one of Time Warner’s biggest customers. Instead of sending vast amounts of cash outside of the company to Time Warner, AT&T can now essentially pay itself with that cash. It is buying it’s own product. The can then retain the profit from both components. This will give them much more cash to do ?????.
It’s a brilliant move for the business. It also gives them a tremendous increase in power in the marketplace. They will be able to more effectively wall off threats from Netflix, Amazon and other direct streamers as well as future threats from Google and Facebook.
For us the consumer, not so good. More money, more power concentrated in fewer hands. This is like Ford or GM owning the roads we drive on, collecting tolls, and then selling us the vehicles we use. All the while, they will keep telling us how much better off we all are. We have heard this story before.”
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