Home Daily Blitz U.S. Says AT&T Wants Time Warner Deal To Save Pay-TV ‘Cash Cow’
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U.S. Says AT&T Wants Time Warner Deal To Save Pay-TV ‘Cash Cow’

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The following is an excerpt from reuters.com | April 5, 2018 |

WASHINGTON (Reuters) - The U.S. Justice Department presented evidence on Thursday to show that AT&T (T.N), owner of DirecTV, viewed buying Time Warner (TWX.N) as a way to make viewers stick with their pay TV service instead of moving to cheaper online providers.

The department has sued to block AT&T’s $85.4 billion acquisition of Time Warner, saying the deal could raise prices for pay-TV rivals and subscribers while hampering the development of online video.

In a hearing before U.S. Judge Richard Leon, Justice Department attorney Julie Elmer cited an email and report in which Gregory Manty, a director of corporate strategy for AT&T, indicated that buying Time Warner’s content would allow AT&T to slow the decline of pay TV, which was described as a “cash cow.”

Elmer pushed Manty to agree that the report had been “sanitized,” noting that some phrases were removed by AT&T executives or outside counsel.

For more visit: reuters.com

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