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Deal would likely face regulatory scrutiny

Communications giant AT&T is looking at making a big purchase that would secure it one of the most popular satellite TV networks in the U.S. AT&T is said to be considering a purchase of DirecTV in a deal that could be worth $40 billion.
 
If AT&T buys DirecTV, it would make the combined company roughly the size of Comcast. Comcast earlier this year announced its intentions to acquire Time Warner Cable for just over $45 billion. A combined TWC and Comcast would have around 30 million subscribers. If AT&T and DirecTV combined, they would boast 26 million TV subscribers including the 6 million people on the AT&T’s U-Verse TV service.
 
The AT&T and DIRECTV deal would likely face stiff regulatory scrutiny – just as Comcast is expected to receive -- thanks to the size of the combined entity.
 
No official comments from AT&T or DirecTV have been offered at this time.

Source: Variety



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RE: Hmmmm
By stm1185 on 5/1/2014 2:00:33 PM , Rating: 2
Anywhere you have the choice for AT&T Uverse TV you almost certainly have the choice for DirecTV, NOWHERE do you get a choice between Comcast and TW...

Which is why if any merger deserves to be blocked it's this one. In this case the reduction in competition is actually real; and not just Comcast hate inspired idiocy.


RE: Hmmmm
By Mitch101 on 5/1/2014 5:22:28 PM , Rating: 1
Not sure why you think I would have bias toward Comcast?

I have Time Warner and Direct TV. In my area I can also get cable from MI-Connection but they cost more than Time Warner and the board of directors have questionable staff members.


RE: Hmmmm
By sorry dog on 5/2/2014 1:03:16 PM , Rating: 2
quote:
Anywhere you have the choice for AT&T Uverse TV you almost certainly have the choice for DirecTV, NOWHERE do you get a choice between Comcast and TW...


The problem is that a combined Comcast/TW will create a MSO (multiple system operator) that will dwarf the size of all of the next biggest MSO's. Might as well forget about municipal broadband. I think in most markets that will lead to a duopoly of Comcast vs. ATT or Verizon or other telco's using a different type of broadband tech. Comcast will have huge advantage in buyer and supplier power in the coax based ISP and TV/entertainment markets. To help you imagine the many scenarios that will lead to, just google Porter's 5 forces. The many companies that provide service and products will literally be in a supplier solely to Walmart situation except to a even greater extreme. The choice of providers in many markets, even in suburban areas, is already at 2 or just 1, and I see nothing this will do to improve that... we are sort of talking about the company that just won the least popular company contest.

I'm still having trouble wondering why this proposed merger has not received the same or greater amount of flak compared the to the Tmob/ATT merger. Using the usual number based measures like the Herfindahl index, it should be more obvious that the Justice Dept should contest this based on ISP and MSO criteria... then again maybe Comcast is just getting bang for their lobbying buck than ATT.


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