Is AT&T’s bid for Time Warner vague or Machiavellian?

THE proposed takeover of Time Warner by AT&T is one of the most important deals of the decade. It would create America’s sixth-largest firm by pre-tax profits, one that delivers internet and media services to hundreds of millions of people. It has become a political football after the Department of Justice indicated that it might block the deal or impose penal conditions. Some worry that the DoJ is being directed by President Donald Trump, who hates CNN, a news channel that Time Warner owns.

That the nominally independent antitrust apparatus is under a cloud is depressing. But revisiting the deal this week, a year after it was announced, Schumpeter was struck by another remarkable thing: how waffly AT&T’s rationale for it is. Over $100bn is being spent, based on vague reasoning and figures.

America’s media and telecoms industry has long had episodic deal frenzies, reflecting a combustible mix of technological change, juicy profits and ambitious moguls and...



via Business Feeds

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