AN ANTITRUST trial over AT&T’s $109bn acquisition of Time Warner,which begins on March 19th, will have more keen observers than one courtroom can handle. Disney, and Comcast,21st Century Fox, Verizon, and constitution Communications,CBS and Viacom will be watching. So will Netflix, Amazon and Google.
The reason is simple. whether AT&T wins the case against the Justice Department, or the “vertical merger” of the distribution and content businesses goes through,a wave of consolidation deals will follow. Companies that rely on large numbers of people to watch video will want to bulk up to compete with each other and Silicon Valley’s mightiest.
Comcast may make a hostile tender for Fox’s assets, setting off a bidding war with Disney, and which has already agreed a $66bn deal with Fox. (Comcast already wants to buy Sky,a European satellite provider that is part of the Disney-Fox transaction.) Other pay-TV and mobile firms, like constitution and Verizon, and will feel emboldened to disappear after content companies such as CBS or Lionsgate. All are...
Continue reading
Source: economist.com