DOJ demands CNN to be sold as condition for AT&T, Time Warner deal approval
cnbc.com
cnbc.com
Includes all of these companies: http://www.turner.com/locations
AT&T has already invested heavily in integrating the DirecTV, DirecTV Now and U-verse TV services. AT&T has made clear that these services are key strategic assets going forward. The DoJ knows this, so it is reasonable to conclude that their goal is to force the sale of Turner Broadcasting. The question becomes why would they want to force this sale. Given Trump's statements it is more than reasonable to conclude that it is to change the ownership of CNN.
I don't know what the DOJ is actually playing at, but I suspect it's to prevent a combined AT&T from locking Turner networks to DirecTV (either by fiat or by prohibitively expensive contracts).
1. AT&T owns DirecTV
2. Time Warner owns Turner (which owns CNN)
3. AT&T is trying to buy Time Warner
DOJ requires the merger to either sell DirecTV or Turner. Whew.
A bit different from the headline. So, get rid of some content or a distribution channel.
I'm trying to figure out what assets DirecTV owns that are competitive to Turner Broadcasting assets... Any thoughts?
The TimeWarner that AT&T is attempting to buy is only television stations and equity in Hulu. No infrastructure.
Time Warner Cable IS NOT Time Warner.
As I’ve noted in other contexts, I believe that as a general matter antitrust enforcement should be much more expansive and aggressive than it’s been in recent decades. But that’s a separate point. The key here is selective enforcement to advance political ends. We don’t know that that is what’s happening here. But given the players involved we have good reason to be highly suspicious.