Over the weekend, we learned that Dealreporter was projecting that the DOJ would likely hinder the AT&T (NYSE:T) and Time Warner (NYSE:TWX) deal. I thought one of my oldest Seeking Alpha friends and colleague David Alton Clark, or DAC, as he often signs off, did a wonderful job telling you why you shouldn’t believe the hype. The buzz surrounding these pieces reminded me when President Trump reiterated his concerns about the merger. I will be clear. It doesn’t matter what Dealreporter thinks, what DAC says, what Trump thinks or says, or frankly even what I opine on. What matters is what federal regulators do. As of right now we have history to go on, the facts surrounding patents/trademarks and essentially hearsay of when Trump contended that the merger would concentrate too much power.
What would be the case for a full review and potential block of the deal? Without delving into a massive thesis on antitrust issues and monopolization of power, it is sufficient to say that in some respects President Trump is correct. What do I mean? It ‘may’ concentrate too much power given these are two major media companies, but the truth is that AT&T has morphed itself into one of the most innovative telecommunications giants on the globe. This move is a power play, no doubt about it. But neither my respected colleagues, other journalists, or even the President doesn’t have the final say. Regulators do. Can opposition to the deal from the public and/or the President hurt? Well, it is not a good thing. We would prefer..…………..READ MORE