As anticipated, A.T.& T.’s proposed acquisition of Time Warner is being met with great skepticism by regulators across the nation. Over this past weekend, the world’s largest communications giant announced an $85 billion takeover bid of the media conglomerate Time Warner. If the deal were permitted to go through, these two entities would combine to form one of the largest, if not the largest, corporate organizations in the world.
According to sources in Washington, there’a a great deal of concern that this acquisition would put too much power in the hands of too few people. While that’s usually the rally cry of government regulators when faced with a mega-merger, there is also a realistic chance that customers of both companies would be subjected to higher prices. That’s a big concern to many democrats and particularly Senator Bernie Sanders and his people.
With the elections a little more than two weeks away, Wall Street is trying to get a read on how each of the two Presidential candidates would react if faced with this merger. In the past, Democrat candidate Hilary Clinton has been anti-merger when to comes to large organizations. With that said, she has not yet given any indication related to her stance on this particular merger.
Things are much clearer in Republican candidate Donald Trump’s camp where the sentiment is very much anti-Time Warner. Time Warner owns the cable news organization CNN, which leans very much to the left and has been an outspoken media adversary to the Trump campaign.
At some point after the election, the Senate subcommittee on antitrust will be scheduling hearings to determine whether or not such a merger violates anti-trust laws. The nation can also look forward to the Department of Justice looking into the matter as well while the FCC determines whether or not it is going to have jurisdiction in this particula case.