doj set block at&t takeover of time warner november 8, 20176:50 pm et
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all things considered david folkenflik u.s. justice department has informed at&t block telecommunications giant's planned $85 billion takeover of time warner unless sells off cnn — network targeted derision president trump. move has therefore triggered concerns within cnn administration taking action against media outfit because has angered president coverage, raising first amendment implications.
government's stance seemingly flies in face of decades of precedent: federal authorities routinely approve deals involving so-called vertical integration — consolidation of companies in related fields not competitors. , contradicts current federal antitrust chief's past statements year ago after deal announced.
government's position first reported
financial times. npr confirmed development in interviews 3 people knowledge of negotiations government spoke on condition of anonymity because not authorized speak deal. justice department antitrust officials offered at&t choice keep deal alive: rid of time warner's turner broadcasting division, includes cnn, or dispose of directv, at&t's giant satellite television provider. sticking point appears have been cnn, according 2 informed sources @ turner broadcasting.
"i frankly mystified rationale here," said university of pennsylvania law professor herbert hovenkamp, leading authority on antitrust issues. "you need know competitive harm threatened. far, don't see it."
trump indicated might seek thwart at&t-time warner deal on antitrust concerns. yet trump has been far more vocal anger @ cnn — both candidate , president. example, earlier year, @ formal press conference in poland nation's president, trump said, "they have been fake news long time. have been covering me in dishonest way."
result, within time warner, trump administration's stance being seen direct strike against cnn. "there isn't precedent," says 1 executive @ turner broadcasting, television subsidiary have sold off. "it's 1 thing say, 'fake news'! it's reverse governmental policy because object company's journalism."
at&t chairman , ceo randall stephenson said wednesday company never offered sell cnn , has no intention of doing win approval of time warner deal.
without turner broadcasting, includes such channels tnt, tbs , cartoon network, deal nonstarter; according company's 2016 annual
report shareholders, turner broadcasting contributed 60 percent of time warner's profits. (turner not include hbo, time warner's premium cable channel.)
justice department not confirm stance, saying not discuss matters under review. federal regulators separately reviewing sinclair broadcasting's proposed acquisition of tribune media, give control of more 200 stations nationally. , john malone's discovery communications in process of acquiring scripps network interactive inc., combine 2 families of cable networks. deals "horizontal integration" — blending of competitors — given far rougher scrutiny. yet concessions demanded federal government at&t package greater expected face sinclair or discovery deals. indeed, federal communications commission changed regulations make easier approve deal sinclair, conservative chain of local stations has emerged coverage , commentaries supportive of president.
"the 1 reason doesn't fly blocking deal is, 'don't approve because it's cnn, , cnn annoys president,' " said craig aaron, president , ceo of consumer advocacy group free press. "it's legitimate federal government big. question is: legal reasoning? , think there's antitrust case make there."
"if reason that's coming down is, 'punish cnn,' that's real problem," aaron told npr. "we don't know, , because of trump has said, can't ask question."
head of department's antitrust division makan delrahim, served deputy antitrust chief under president george w. bush. justice department blocked small number of horizontal integration deals blending competitors — such thwarted merger of airways , united. republican administrations typically less willing intervene in corporate actions.
in
interview canadian television network when proposed, delrahim discouraged talk at&t-time warner deal tough sell.
"just sheer size of , fact it's media think lot of attention," delrahim told bnn in october 2016. "however, don't see major antitrust problem."
at&t has signaled intends challenge administration in court on requirement.
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