>> What's the problem with the $85 billion media merger of the decade between AT&T and Time Warner? A government official telling Reuters Thursday, it's all about size and control. By combining AT&T distribution through mobile services and Direct TV satellite with Time Warners various media properties including CNN, HBO, and Warner Brother Studios.
The DOJ believes the new company will be big enough to dictate content pricing and stop competitors from coming up with new technologies to deliver video. AT&T CEO Randall Stephenson thinks the government is wrong, and told a conference Thursday, he's digging in for a long fight says Reuters telecom correspondent Angeline Anatole.
AT&T is prepared to litigate this, and they're not going to voluntarily put big assets on the table, or at least that they're saying, when it comes to investors. He said over and over again that "I never offered CNN," And to sell in exchange for deal approval and that he doesn't want to see a CNN sale.
He sees value in owning that asset.>> Getting rid of CNN and the Turner Broadcasting Unit or DirectTV is key to getting this deal approved a government official confirmed Thursday. Adding, the Justice Department is worried AT&T Could withhold Time-Warner content from rival distributors. But Stevenson maintains he needs all of AT&T and all of Time-Warner to create an advertising platform that will rival Facebook and Google.
Not to mention, create a new way to track the tens of thousands of people, Or ditching costly cable and satellite TV to watch YouTube and Netflix on mobile devices. Negotiations are expected to be ongoing with a government source saying the DOJ is keeping the, door open to alternative proposals for an asset sale.