Judge Will Decide Two Media Merger Cases in One

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When US District Court Judge Richard Leon hears the U.S. government’s lawsuit to stop the merger of AT&T and Time Warner, he will be deciding not just one media deal but two. Not only can his decision allow one blockbuster merger, but it could also lead to the unwinding of a second. After President Donald Trump and AT&T CEO Randall Stephenson, the person who will most closely watch the case will be Brian Roberts, CEO of Comcast. If Judge Leon approves the deal, Roberts will likely lob in another bid for the assets that 21st Century Fox agreed to sell to Disney. Though Comcast bid higher than Disney, it was turned down. Analysts say one reason was regulatory concerns. A Comcast acquisition would add more cable TV channels to a company that is a powerhouse in channel distribution, making it a vertical merger of the sort AT&T is pursuing with Time Warner. (Disney’s acquisition would be horizontal, combining similar businesses in film and TV content.) That means that if Judge Leon approves AT&T’s acquisition of Time Warner, he may open the door for a Comcast-Fox deal. The  judge is clearly sensitive to the issues surrounding vertical integration. And by disclosing that it is considering reviving its pursuit of Fox, Comcast has effectively put him on notice that it will take that pursuit to the next level if he approves the AT&T-Time Warner deal. That isn’t great news for AT&T.


Judge Will Decide Two Media Merger Cases in One