AT&T and Time Warner Cable Merger
30 Oct 2016 14:56 #10741
Last weekend AT&T made an offer to buy Time Warner Cable for $85 billion, Time Warner accepted the offer. This is possibly one of the largest mergers ever. It could open the doors to a lot of business growth for AT&T. Today, more and more people are streaming shows, movies, and news online and plenty of people have stopped their cable service altogether. This merger would also be very beneficial to Time Warner Cable because it would be getting a lot of the networks content seen by more people.
U.S. regulators have yet to approve this merger. This wouldn't be the first time AT&T buying another company has been stopped by U.S. regulators. In 2011 AT&T's plan to buy T mobile was not approved. I think that that was probably for the best because after a deal like that AT&T would've been far too powerful and have the ability to charge unreasonably large rates, which would not be fair.
I feel like this merger is different and should be approved. AT&T is not trying to buy another phone network, they are trying to buy a cable network. This deal would not mean unbelievably high phone prices. It would simply help both businesses grow. Since Verizon has recently bought AOL and Comcast merged with NBC universal there should be no reason that this deal shouldn't go through.
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