While many people worry that Time Warner-AT&T merger would reduce competition, Mark Cuban says that it will actually do the opposite.
Over the weekend, AT&T (T) agreed to buy Time Warner (TWC) for $85 billion in one of the largest-ever media mergers. While many have criticized the deal as they expect it to diminish competition, Cuban has taken up a much more surprising stance. The billionaire told TechCrunch that the merger would end up boosting competition, particularly in the digital content space.
Cuban said that the Time Warner-AT&T merger would challenge tech giants like Facebook (FB) and Google (GOOGL) who are currently “dominating digital content.” He told TechCrunch that “traditional content needs help transitioning to compete with app-driven content,” and this deal would give Time Warner the resources it needs to develop its web properties. Cuban says Time Warner and AT&T currently “lag way behind” when it comes to digital content.
Considering the large size of this deal, various politicians have been vocal about their skepticism. Vermont Senator Bernie Sanders stated that it would lead to “higher prices and fewer choices for consumers,” standing in line on this issue with Republican presidential nominee Donald Trump who said it would “destroy democracy.”
Hillary Clinton hasn’t addressed the merger directly, but her camp appears to be taking a lighter approach than her opponent. Her running mate, Tim Kaine, said that “less concentration” generally tends to be better, particularly when it comes to media. A campaign spokesperson, however, said that we need to have more information about the deal before we can reach a conclusion.