The Trial Over the Future of Media Kicks Off Today
- First major merger challenge under Trump thwarts AT&T strategy
- DOJ asking judge to block megadeal in trial that starts Monday
Will an AT&T-Time Warner Merger Diminish Competition?
AT&T Inc. faces off in court against the U.S. Justice Department Monday in a test of the government’s effort to block its $85 billion takeover of Time Warner Inc. and the phone giant’s bid to become a telecom and media powerhouse that can compete in the age of Netflix and Amazon.
If the grand design of Chief Executive Officer Randall Stephenson prevails, AT&T will emerge as an entertainment giant, with movies, TV and news to feed its 119 million mobile, internet and video customers. If the government wins, it will be the second time in seven years that the U.S. has derailed a major deal by Stephenson and will leave the largest U.S. pay-TV provider and phone company with fewer options for growth.