Wednesday, March 8, 2017

Time can often kill a deal, but this time it may help one

On Wednesday, newly appointed FCC Chairman, Ajit Pai, stated that he would allow an independent review by commission attorneys of his decision not to examine the proposed AT&T-Time Warner merger because there are no broadcast license transfers in the $85B deal. 


Assuming the position stands, that leaves the DOJ as the sole regulatory agency reviewing the merger.  And, it is likely that, with the passage of time (last 6-months or so), the deal is much more likely to get approved in the months ahead, in spite of President Trump’s disdain for the deal when first announced.  What has changed?  Believe it or not, there are greater consumer choices for distribution and content and the providers continue to chip away at the stranglehold traditional Pay TV operators (AT&T) have had in the vertical chain.  Choices from Hulu, Apple TV, Amazon Prime, Netflix, SlingTV, PlayStation Vue and now YouTube TV are formidable competitors, so let them duke it out in the marketplace.

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