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Businesses AT&T Communications United States

Judge Rules AT&T Can Acquire Time Warner (wsj.com) 172

A federal judge said Tuesday that AT&T's $85.4 billion purchase of Time Warner is legal, clearing the path for a deal that gives the pay-TV provider ownership of cable channels such as HBO and CNN as well as film studio Warner Bros. From a report: U.S. District Judge Richard Leon announced his decision in a packed courtroom, ruling that antitrust enforcers at the Justice Department had not proven their case against the merger. The decision, in one of the biggest antitrust cases in decades, is a milestone victory for AT&T as it looks to reposition itself in a rapidly evolving media landscape. Its deal for Time Warner, valued at roughly $80 billion, has been pending since October 2016. The acquisition means AT&T will be the nation's top pay-TV distributor, through its ownership of DirecTV, as well as the owner of some of the country's most sought-after channels: Time Warner's Turner networks -- including CNN, TBS and TNT -- as well as HBO, the most popular U.S. premium network.
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Judge Rules AT&T Can Acquire Time Warner

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  • by DogDude ( 805747 ) on Tuesday June 12, 2018 @03:52PM (#56773726)
    Now, our business has the choice of exactly *one* shitty ISP. Fucking wonderful.

    It's really difficult to run a business in the US due to our shocking lack of regulations.
    • by Merk42 ( 1906718 ) on Tuesday June 12, 2018 @03:57PM (#56773750)
      The Invisible Hand of the Free Market will work it out of course, regulation is bad.
      • This is the free market's outcome right now. Unregulated, ie: free for businesses, only has monopolistic outcomes. Oh, and that same unregulated situation also leads to slavery.

        • The tone of your comment makes me think that you regard monoploies as bad, but they're not.
          As everyone knows giving ordinary people choices just makes them confused and angry. Things will be much better when there is only one huge business in America, then no-one will need to be confused or angry when they need some service or product.
          This will also have the benefit that the one company left will not need to employ any political lobbyists, as the senators and congressmen (not to mention the president) w
        • Ah yes, another communistic jab at capitalism. But you and your red comrades are wrong here: Free markets absolutely depend on regulation. Capitalism in general just doesn't work without it. (And as it turns out, neither does communism, in spite of that idiot Marx claiming that it doesn't even need any government.) The problem many have is that some regulations are quite heavy handed. Think about it, if in a free market, people were allowed to just steal from you through securities fraud without any repercu

      • If you want a choice of internet providers you should probably ask your local government to stop granting monopoly rights to a single company. Of course that would probably mean losing some kick-back money, so I don't see it happening unless you push for a municipal broadband initiative in your city. It might work if you're a small enough town, but good luck getting through the political machine in anything above 50,000 or more.
        • If you want a choice of internet providers you should probably ask your local government to stop granting monopoly rights to a single company.

          Which ISP has been granted a monopoly by the government? It would be nice to know which one I shouldn't be dealing with as a way of punishing one of them.

          • It's the typical business model in most cities as far as cable companies go: https://en.wikipedia.org/wiki/Cable_television_franchise_fee [wikipedia.org]. This is an extension of rules created under the Cable Communications Policy Act of 1984, which probably never anticipated cable companies becoming internet service providers. Here're the specific city laws for Seattle [municode.com], though most cities will have something similar. Technically there's nothing there that necessitates a monopoly, but there's also nothing stopping a compan
            • by Obfuscant ( 592200 ) on Tuesday June 12, 2018 @06:33PM (#56774490)

              It's the typical business model in most cities as far as cable companies go: https://en.wikipedia.org/wiki/... [wikipedia.org].

              Thank you for your lecture. I've been involved in cable franchise issues before. You seem to know about the act of 1984, but can't remember the followup federal law that prohibits exclusive franchises. Without an exclusive franchise, there is no government-granted monopoly.

              You cited the franchise ordnance for Seattly, but apparently failed to read it. Refer to 21.60.050 A. Read all the words.

              Technically there's nothing there that necessitates a monopoly,

              Nothing necessitates a monopoly, and nothing there GRANTS a monopoly, either.

              but there's also nothing stopping a company from acquiring a non-compete clause either

              Do you understand that federal law overrides local law in this area? It is against FEDERAL LAW for the city of Seattle to grant an exclusive franchise to ANY cable operator. (Since there are no franchise requirements for ISPs, that's the only franchise issue here.)

              Comcast was quite notorious for doing that.

              Of course Comcast would try for exclusive franchises while they were still legal. It's common sense for them. BUT -- they've been illegal for more then twenty years. The last franchise agreement between Seattle and Comcast was reached in 2017 -- and the expiring one wasn't exclusive either. The franchise ordnance you cite is explicit on this.

              There are also a large number of states which have laws that attempt to hinder or outright prevent local municipalities from creating their own ISP,

              This has nothing to do with cable companies, and in any case does not create a government-granted monopoly. It's irrelevant.

              Personally I'm of the opinion that cities should be in charge of their own infrastructure

              That's a different issue. You've claimed that Comcast has a government-granted monopoly in Seattle, and the existence of three franchised cable companies, along with federal law, proves you wrong.

              and allow various companies to offer competing services to the city's residents.

              I've already made friends with Google, and it tells me that there are at least 6 residential and 14 business ISPs serving Seattle, and of those 14 at least 7 are gigabit. This is what you call "no competition"?

              • Thank you for your lecture. I've been involved in cable franchise issues before. You seem to know about the act of 1984, but can't remember the followup federal law that prohibits exclusive franchises. Without an exclusive franchise, there is no government-granted monopoly.

                Which law specifically are you referring to, as there were laws in the mid-90's that stated as much, but many of those previsions were stripped away in subsequent revisions to those laws or other federal acts passed at later dates. There likely were (and perhaps still are) laws that prevent a monopoly on internet service in a general sense, but those were easily circumvented as long as some telco was selling dialup. A de facto monopoly is just as good as a de jure monopoly.

                Nothing necessitates a monopoly, and nothing there GRANTS a monopoly, either.

                I somewhat picked Seattle at rando

                • There likely were (and perhaps still are) laws that prevent a monopoly on internet service in a general sense,

                  There is not now and never has been a government-granted monopoly for internet service. The cable television laws that allowed exclusive franchises and now prohibit them deal with cable television services, not ISPs.

                  The fact that there are 14 business-class ISPs at least for Seattle kind of proves this.

                  Some free market advocates seems to think that this means outlawing any kind of publicly owned entities from participating in the market,

                  This has nothing to do with outlawing municipal broadband. The reasonable restriction on municipal broadband systems is that they are deliberate and explicit attempts at bypassing the franchise contracts t

              • When Seattle comes up in these conversations someone usually points out that once you get out of the city proper, internet coverage goes right into the toilet, with most addresses covered by only one or two options. Is this not true?

                • with most addresses covered by only one or two options. Is this not true?

                  I don't know, and it is irrelevant to the issue of whether there is a government-granted monopoly status to any of them. The answer to that is "no".

      • by sycodon ( 149926 )

        I'm losing track of who ate whom.

        Time Warner was consumed by Spectrum. So is AT&T buying Spectrum or some leftover part of Time Warner?

        • by zwede ( 1478355 )

          I'm losing track of who ate whom.

          Time Warner was consumed by Spectrum. So is AT&T buying Spectrum or some leftover part of Time Warner?

          Charter bought the ISP part of Time-Warner and branded it Spectrum. AT&T is now buying the content part (CNN, HBO etc) of Time-Warner.

      • by mi ( 197448 )

        "Regulation" is what's keeping the current monopolies monopolies [wired.com] in the first place.

      • I don't see how it's invisible, since I can see it flipping me off!
    • Re: (Score:3, Informative)

      by Anonymous Coward

      This is Time Warner, the media company (owns a few TV stations), NOT Time Warner Cable, the cable company/ISP (now Spectrum). Although not as bad, it's not good either as you know the stations TW owns will disappear or royalties will go up for competing TV and streaming companies.

    • Now, our business has the choice of exactly *one* shitty ISP. Fucking wonderful.

      What are you talking about? AT&T wants to buy a media company, not another ISP.

      It's not that an ISP buying a media company doesn't concern me (especially with net neutrality now dead.) It's just that this doesn't reduce your choice of ISP.

      It's really difficult to run a business in the US due to our shocking lack of regulations.

      I'm certainly not anti-regulation. It's just not clear to me what regulation you think is missing here.

      Now I'll grab some popcorn and watch as the libertarians flame both of us.

      • by DogDude ( 805747 )
        It's just not clear to me what regulation you think is missing here.

        We desperately need ISP's to be regulated like our electrical utilities are. Our options for Internet access are either shitty mega-corporation #1 (AT&T) or shitty mega-corporation #2 (Time-Warner... apparently NOT the same Time-Warner...?).

        It's so bad that we have to have dual connections at each of our locations, so when one fails (as they often do), we can still have basic connectivity.
        • by Anonymous Coward
          competition occasionally forces some corners to be cut to keep prices in line, and everyone must then cut corners to keep up. It's a race to the bottom. If you had a choice of 10 ISP's, they would all be even shittier than the 2 you currently have because they'd all have a smaller slice of the pie.
        • We desperately need ISP's to be regulated like our electrical utilities are.

          No, we need electrical utilities deregulated like our ISPs are. The case for their de-facto nationalization, based on the mythical "natural monopoly" concept [mises.org], back then was completely bogus [wordpress.com].

          • by DogDude ( 805747 )
            No, we need electrical utilities deregulated like our ISPs are.

            Why?
            • The case for their de-facto nationalization, based on the mythical "natural monopoly" concept [mises.org], back then was completely bogus [wordpress.com].

              • by Dog-Cow ( 21281 )

                Those words do not answer the question. It seems, from the few comments I've read of yours, that you're an illogical moron.

            • by mi ( 197448 )

              Because the nationalization made us less free — someone seeking to pursue happiness by creating an electricity-generation plant, is effectively barred from doing it by these fascist regulations [ronpaulinstitute.org]. That should be a good enough reason for anyone with principles.

              For those, whose principles aren't so solid, the words: "The case for their de-facto nationalization, based on the mythical "natural monopoly" concept, back then was completely bogus," — provide additional explanation.

              We've surrendered a libe

              • by DogDude ( 805747 )
                Wow, that's some serious nonsense.

                How about this: Society as a whole greatly benefits from having reliable and affordable electrical service.

                I'm sorry if you feel "less free" because of it, but your feelings aren't as important as the rest of society's needs.
                • by mi ( 197448 )

                  Society as a whole greatly benefits from having reliable and affordable electrical service.

                  That's an argument for nationalizing everything: food-production, house-cleaning, television and other media, automobiles...

                  your feelings aren't as important as the rest of society's needs.

                  So, you subscribe to the principle of: "The common interest before self-interest"?

                  • by DogDude ( 805747 )
                    For some things, competition is good. For some things, nationalization is good. For some things, a combination of both is good.

                    The world isn't as black and white as you make it out to be. Read a lot (not just that Ayn Rand junk). Think a lot. Best of luck!
                    • by mi ( 197448 )

                      For some things, competition is good. For some things, nationalization is good

                      You are yet to identify the criteria — everything you said about nationalizing the Internet-service provision also applies to everything else.

                      Plus, I would still like a clarification on whether you still subscribe to the principle of "The common interest before self-interest". You certainly did subscribe to it 2 hours ago — has that changed?

                    • by DogDude ( 805747 )
                      There is no single criteria. A society of billions is very complicated. A simple "freedom is good" mantra simply doesn't work. If you're looking for some ideological argument, I have no interest in that, because it's futile, and ultimately, stupid. Yes, I think that utilities, including electrical service, and Internet service, are better as government regulated entities. If you want to tilt at windmills, you can do it without me.
                    • by mi ( 197448 )

                      There is no single criteria.

                      Ok, so there is a multitude of criteria. And yet, for some reason, you wouldn't give even one example... Your argument was:

                      Society as a whole greatly benefits from having reliable and affordable electrical service.

                      I can replace the words "electrical service" with just about anything: "clothing", "kitchen appliances", "automobiles", "news-media" — and the statement will still be true. So, if you don't want to nationalize TV-stations, you must offer some criteria. Why is it

                    • by DogDude ( 805747 )
                      You're a nutter. It's impossible to have multiple companies competing for providing electrical service. We'd have lines and trenches everywhere. It is a physical impossibility. Also, electrical service is too important to modern society to have to rely on for-profit businesses operating in their own interests.
                    • by mi ( 197448 )

                      You're a nutter.

                      Oh, wow, name-calling... An admission of an argument lost...

                      It's impossible to have multiple companies competing for providing electrical service

                      This is bullshit, of course, but I'm not arguing with you any more.

                    • by DogDude ( 805747 )
                      I'm not arguing with you any more.

                      You never started to.
      • by swb ( 14022 )

        No offense, but what rock have you been living under where "media companies" haven't become ISPs and often the only alternative ISPs to existing ILECs?

    • Now, our business has the choice of exactly *one* shitty ISP. Fucking wonderful.

      There are a lot of reasons to hate this, mostly dealing with concentrated content/IP ownership. However, IIRC, the ISP service is being (or already was) spun off.

    • by shanen ( 462549 ) on Tuesday June 12, 2018 @04:23PM (#56773866) Homepage Journal

      This calls for the more complete form of my sig:

      #1 Freedom = (Meaningful + Truthful - Coerced) Choice{~5} != (Beer^4 | Speech | Trade)

      You have hit on the key term "~5" in your brief comment. Zero or one choice is not a meaningful choice. Two is the starting point of freedom, but most of us actually max out around 5 choices at a time. By the time you get up to 20 or 30 choices, you're helpless and the advertisers or slick salespeople are going to pull your strings, driven by the same kind of insane profit maximization that ATT is worshiping with this EVIL merger.

      Short summary: Capitalism is deader than Communism. Socialism is sick and Libertarianism is a sick fantasy. The most successful governments now appear to be Putin's style of Kleptocracy or Xi's style of slightly benevolent Dictatorship. #PresidentTweety wants to combine the worst of those two, though he also likes Kim Jong-un's style. We are so phucked. Corporate cancerism RULZ.

      In religious terms: There is no gawd but profit, and ATT wants to be a YUGER prophet!

      Solution? Don't hold your breath, but how about a progressive tax on corporate profits linked to market share. In your [DogDude's] situation, now that ATT is the monopolist in your market, they would have to pay the highest tax rate on all of the profits they earn there. The goal would be to encourage them to reproduce by fission, but if they don't, then the taxes will pay for (1) extensive monitoring by honest [LOL] and unbribed [ROFLMAO] government regulators (to make sure they aren't abusing their customers too badly) and for (2) research into ways to break the monopoly. (LTE is actually such a technology, though it is actually being used by the cancers that own it to prevent breaking their monopolies.)

      • The most successful governments now appear to be Putin's style of Kleptocracy or Xi's style of slightly benevolent Dictatorship

        How do you define successful?

        Listing countries by Human Development Index [wikipedia.org] tends to show countries with left leaning social policies and centrist to slightly right economic ones. A mix of socialism and capitalism.

        Picking other indices (longevity, happiness etc.) mixes the ranking, but not the conclusion. Extremes of any sort tend to be unstable and not especially successful over the long term.

        • by shanen ( 462549 )

          Good question. I was writing at the level of real world power plays between nations. For example, I would argue that ZTE was a largely criminal corporate cancer that had even earned bankruptcy, but Xi was able to bend little Trump over his knee and change his pointy little mind.

          At the level you are writing, "successful" would point mostly at the Scandinavian counties, but Putin is losing little sleep worrying about them. Though Putin's personal wealth is unknown, the high estimates are around $200 billion,

          • Thank you for the reply. It looks like I've misunderstood you when you've used 'successful governments' and appreciate the clarification.

      • I certainly won't hold my breath for it, but what is needed is a corporate income tax, not on their profits. Taxing profits still permits using a corporation as a tax shelter. A corporation which cannot be successful while paying income taxes should go away and let someone more efficient take their space in the market.

        • by shanen ( 462549 )

          I think you are being confused by the complexity of tax laws. It sounds like you are trying to avoid the case of clever deductions where a corporation's losses can be used to evade taxes. I think such cases are almost always created with bribes to politicians, but the underlying rationales are absurd, usually something along the lines of "You have to protect this industry until it can recover" or "There will be too much suffering if you let this company die."

          From my perspective, if a company cannot generate

    • by Anonymous Coward

      Still better than much of Seattle where the city council gave monopolies to one cable company(Comcast) and one telco(Qwest), but they didn't require them to offer service. Just sucks that I have dial-up at home and so many other coworkers do too.

      • Still better than much of Seattle where the city council gave monopolies to one cable company(Comcast)

        There are currently three "cable companies" franchised with the city of Seattle, and in 2015 the city did away with the 'franchise zones' that limited service areas.

        There is no requirement for a franchise for an ISP. The "web" shows that there are at least 6 residential ISPs and 14 business class, with at least 7 of the latter offering gigabit network speeds.

        What monopoly are you referring to?

    • In point of fact, regulations are probably responsible for the lack of competition in your area.

      • by DogDude ( 805747 )
        Our power company doesn't have any competition, but there are regulations that describe the level of service that they have to offer. Unless we're going to allow anybody with some cable to start buying wires and putting up utility poles, ISP's need to be regulated. Modern societies need working, reliable, reasonably priced Internet access, just like we need working, reliable, reasonably priced electric power.
    • Actually itâ(TM)s not the lack of regulations, itâ(TM)s the lack of GOOD regulations
    • As the saying goes (Score:4, Insightful)

      by rsilvergun ( 571051 ) on Tuesday June 12, 2018 @05:52PM (#56774310)
      elections have consequences. You're the first person I've heard make the point that it's hard to run a business due to a _lack_ of regulations. I'm not saying you're wrong (you're dead on actually). But I've just had the narrative of regulations making business harder pounded into my skull so long it's hard to imagine the opposite, even when I logically what you're saying.
      • Re: (Score:1, Informative)

        by MaryannG ( 5181397 )
        Pardon me but how does an election affect this whatsoever? The judge was appointed by W, the suit was initially brought by Obama's DOJ and continued and supported by Trump's. If you're keeping score that's one Republican appointed judge (which, of course, doesn't necessarily mean the judge is a Republican as well) ruling against the Republican president's DOJ whose lawsuit was originally brought by the preceding Democrat's DOJ. The sad and sorry truth is that anti-monopoly regulations are sufficient here
        • "proof is what our justice system currently works on."

          That, and big suitcases full of cash.

          • Oh. So AT&T bought the trial judge? Really? I mean, I get that throwing out anti-establishment kneejerk phrases establishes your street cred with all the cool kids but aside from the same old tired cynical excuses when things run contrary to your worldview...do you have any proof whatsoever of such a claim? Listen, I know going that extra micrometer is just another way "the man" is keeping you down but if you had bothered to look around some, you'd have run across articles where the trial judge was
      • by DogDude ( 805747 )
        You're right. The lack of regulations generally help the big businesses; the ones who can afford to buy their politicians. In this example, AT&T/Time-Warner/Specturm/Comcast say that "regulations hurt their business" which means that they can't screw over their customers as much as they'd like to, or make as much money as they'd like to. All the while, those of us who rely on their services are left to twist in the the wind.

        And of course, it's not just ISP's. The US also desperately needs some reg
    • Now, our business has the choice of exactly *one* shitty ISP. Fucking wonderful.

      Time Warner and Time Warner Cable are now two different companies. The Cable subsidiary was sold off to Charter Communications in 2016 and now goes by Spectrum in most markets. AT&T is buying the former parent company Time Warner for its media properties.

    • How can this have impacted you? Time-Warner spun off Time-Warner Cable years ago and it was purchased by Charter and is now called Spectrum. Or does Time-Warner own another ISP I am not aware of?
    • Something tells me a federal judge is going to be buying a new Tesla this week!

    • This deal will be great for all of us!

    • ISPs, bah.. they're all crappy. The real problem is ...what if you're a Comcast customer and you turn to HBO for John Oliver and there's a message saying, "Comcast is sorry we can't air this channel anymore..."

      And now the only way to watch HBO is via DirectTV, or pay for it directly via Fire, etc...

      I predict that pirating will become more commonplace as more of the pipes own more of the content. Already there's talk that Netflix and Google should start building out their own networks.

      Can we just declare the

  • Monopolies are like candy to a culture of protectionism.
  • Not a problem (Score:5, Insightful)

    by PPH ( 736903 ) on Tuesday June 12, 2018 @04:08PM (#56773800)

    Just have AT&T divest its wireless and broadband services as a condition of the merger.

  • now fox will be sold to Comcast or Disney

    • by Anonymous Coward

      I'm so glad I've rediscovered books. Modern entertainment just keeps getting worse and worse. Everything is easily predictable and often follows the one of a few emotional curves (forget what writers call them: attention grabber -> back story -> issue -> upcoming hero -> hero falters -> you can do it speech -> hero winning -> plot twist -> hero losing -> hero wins). Books and older series are better. Sometimes even the good guys lose.

  • by Anonymous Coward

    Americans are so willing to give up everything for convenience that they have completely forgotten who they used to be. Only 3 major players even control the news media in the US anymore. What do you expect? Most of our money goes to military endeavors anymore. Everything you type or say is recorded somewhere. Our "government" is nothing but people put into power by large corporations. Do you really think anyone is representing you anymore? We all (almost all) have failed to see what is coming. I cr

    • Americans, and people in general honestly don't give a shit any more They feel they are entitled to what they have, and who wants to stand up and fight for anything?
  • by rsilvergun ( 571051 ) on Tuesday June 12, 2018 @05:54PM (#56774322)
    folks. And then at your mid-terms. If you want change you need to start voting these bums out. Don't forget most judges are appointed. The party that appointed this judge didn't. That's why this merger sailed through with zero conditions. And it's why you'll be paying $200/mo for high speed internet in a few years.
    • by pots ( 5047349 )

      you'll be paying $200/mo for high speed internet in a few years

      That's only for Premium Internet though, the full package. I'm sure you'll be able to get a basic package pretty cheaply, giving access to all of the approved websites and services with only a fair and equitable number of injected ads.

    • You neglect to mention the suit against this merger was presented by a Republican president's DOJ, who continued to bring the lawsuit originally brought by the preceding Democrat's DOJ, rather than dropping it, to paraphrase a better worded post above.
      It isn't about party, (both had opposition to it), it's about money.
      And really, I think the judge's statement that insufficient evidence was presented to prevent the merger is laughable. No evidence should be needed to present a case that argues that a merger

  • by Anonymous Coward

    Any merger worth over x billion must inherently be anti-competitive.

    • Any merger worth over x billion must inherently be anti-competitive.

      I tried to post something similar a few hours ago. As we obviously can't be trusted to decide what is and is not a monopoly maybe we should just start taxing companies on market cap. An extra 10% per year per $100 billion would probably work nicely. So if you're an $800 billion dollar company like amazon or google then either start selling off chunks of your business or expect to pay 10% on the second 100 billion, 20% on the third $100 billion, etc.... Then we don't have to try to decide if and how to b

  • What was the motivation of the judge? Why did he feel there was no antitrust violation? Is this a failure of the judiciary or a failure of the DoJ to build a decent case?

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