Sinclair isn't a content generator on a significant schedule.
No but Tribune is, and the merger with Tribune limits competition, and concentrates media in fewer owners. The potential of this merger will be to limit media choices for the public.
The AT&T/TW merger has the potential to increase the cost of content for other distributors.
That isn't what the DOJ says. It says that the merger will increase the cost to consumers. There is no foundation for that claim. This is a traditional vertical merger. Fox merging with Disney is a horizontal merger, which would decrease competition. AT&T merging with T-Mobile was a horizontal merger, which would decrease competition. AT&T is not in any of the businesses that Time Warner is in. AT&T doesn't own studios, it doesn't own cable channels, and it doesn't own content. This is a completely new business. There are lots of cable channels that compete with the Time-Warner channels, so there is no change in the amount of competition. The content wouldn't be any more expensive owned by AT&T than it would be if it remained owned by Time Warner. If anything, AT&T could use its transmission vehicles to make its content CHEAPER to consumers, as its done with DirecTV.
DOJ should've opposed Comcast's acquisition of NBC/U many years ago unless the Universal assets were divested. They aren't bound to approve subsequent mergers because of past mistakes.
The problem is that AT&T still has to compete against Comcast. So because of "past mistakes," AT&T is at a competitive disadvantage, and the DOJ decision takes away an opportunity for AT&T to more fairly compete against Comcast. That has the effect of harming AT&T.
While AT&T will try to make the CNN comments by the President a major issue in the trial, it's unlikely to be a factor.
It's obvious that the president told the DOJ to oppose this merger, just as he's told DOJ to investigate his political opponents. He has politicized the DOJ, and this merger. It was clear in his statement about the merger yesterday. He wants to punish CNN. AT&T commented on that in their press conference, and will make this a first amendment issue. The president should not have commented on pending legal action by his DOJ. Truthfully, AT&T is justified to countersue the president and the government. His comments have the weight of the government, not just a private individual.
In any case, your title of this thread is factually incorrect since DOJ didn't make a sale of CNN a condition by which they'd approve the merger. 'DOJ sues to block AT&T/TW merger' would be an appropriate title.
This thread began before the DOJ issued its decision. The fact that early reports indicated it predicated the sale of CNN for the merger is another point that will factor in court.
