• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

3

Current price of oil as of June 11, 2026

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

3

Current price of oil as of June 11, 2026
TechAT&T

Why Trump’s CNN Attacks Could Help AT&T and Time Warner Merge

By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
November 20, 2017, 6:19 PM ET

It could end up as the biggest antitrust showdown since the Justice Department tried to break up Microsoft at the height of the Windows era.

Following word on Monday that the federal government had sued to block the $109 billion combination of telecom titan AT&T and entertainment giant Time Warner, the companies said they’d fight what they called a “radical and inexplicable departure from decades of antitrust precedent.”

Usually such angry corporate fusillades consist of more loud attacks than rational arguments, but in this case AT&T and Time Warner may have a strong case. And it no doubt helps the companies that President Trump has made a series of public attacks against the merger, and Time Warner’s CNN unit, that raise the specter of political interference.

AT&T CEO Randall Stephenson made clear it was an issue he planned to raise. “There’s been a lot of reporting and speculation about whether this all about CNN and frankly I don’t know,” Stephenson said on a call with reporters on Monday. “But nobody should be surprised that the question keeps coming up because we witnessed such an abrupt change in the application of antitrust law here.”

Typically, the Justice Department attacks mergers that seek to combine competing companies in the same business, like when regulators shut down AT&T’s effort to buy T-Mobile (TMUS) in 2011 or the merger of Staples (SPLS) and Office Depot (ODP) last year. Analysis of those situations seem relatively straight forward: fewer competitors often means higher prices and less consumer choice.

For combinations of companies in related fields, like Comcast’s purchase of NBC Universal, the analysis is more complex and the response from regulators is usually not outright opposition but the crafting of conditions to prevent any funny business in the future. Among other restrictions, for example, Comcast is barred from offering programming only to cable and satellite providers and not Internet-based TV services like Sling TV. That’s because regulators were concerned that the combined companies would use their sway over entertainment content to thwart threats to Comcast’s massive cable service.

Get Data Sheet, Fortune’s technology newsletter.

And the concerns about AT&T and Time Warner, at least in theory, are very similar. “AT&T/DirecTV would hinder its rivals by forcing them to pay hundreds of millions of dollars more per year for Time Warner’s networks, and it would use its increased power to slow the industry’s transition to new and exciting video distribution models that provide greater choice for consumers,” the Justice Department said in its lawsuit filed on Monday night. “The proposed merger would result in fewer innovative offerings and higher bills for American families.”

AT&T said the Justice Department hadn’t sued to block such a so-called vertical merger since President Jimmy Carter’s administration. But what’s changed is the antitrust leadership in the Justice Department, not to mention a few tweets from President Trump saying that he would never allow the AT&T Time Warner merger to be approved.

Some former antitrust regulators agreed with AT&T. “The case relies on antiquated antitrust law from a period of time (over 40 years ago) when we received television programming through rabbit ears,” David Balto, an attorney who helped review mergers at the FTC under President Clinton, noted. “Like those rabbit ears the law DOJ relies on belongs in a museum not in a court and the case is likely to receive rabbit ears reception by a skeptical court.”

Makan Delrahim, the new head of the antitrust division and, ironically, a lawyer who worked for Comcast (CMCSA) on the NBCUniversal deal, is said to be opposed to imposing behavioral conditions. Instead, he is reportedly in favor of a cleaner but more drastic remedy that forces the merging companies to jettison some business units.

So instead of negotiating rules to prevent a newly merged company from hurting consumers, Delrahim favors changing the structure of the company from the start to eliminate or reduce the incentives for bad behavior. That would explain why the department apparently rejected proposed conditions AT&T wanted and instead told the companies to either sell AT&T’s huge DirecTV satellite service or much or all of the TV programming units of Time Warner.

Doing so would destroy AT&T CEO Randall Stephenson’s whole rationale for the deal and paying $85 billion plus taking on another $24 billion of net debt to take control of Time Warner’s rich stable of entertainment that includes HBO, Turner Broadcasting, CNN, and the Warner Brothers movie studio. With revenue from telecommunications and traditional pay TV services sliding, the addition of Time Warner (TWX) would give AT&T (T) a new revenue stream and the ability to evolve more quickly into an online service.

On a call with reporters on Monday, Stephenson pointed to efforts by Netflix (NFLX), Amazon (AMZN), and Google (GOOGL), and other tech companies to start making original entertainment and distribute it to tens of millions of customers.

“Massive, large scale Internet companies with market caps in the hundreds of billions of dollars are creating tons of original content and they’re distributing it directly to the consumer,” he said. “This is disrupting both industries, the media as well as communications industry.

About the Author
By Aaron Pressman
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Notion takes a quiet approach to designing AI features: ‘You can’t have every new tool screaming at you’
AsiaAI agents
Notion takes a quiet approach to designing AI features: ‘You can’t have every new tool screaming at you’
By Angelica AngJune 12, 2026
2 hours ago
Your AI is already setting prices. The real question is who sets the rules
AIAutomation
Your AI is already setting prices. The real question is who sets the rules
By François Candelon, Paul-Louis Andres and Augustin ManchonJune 12, 2026
2 hours ago
A person holds an iPhone as someone next to them points at the screen.
EconomyApple iPhone
You can blame America’s plummeting fertility rate on the iPhone, study finds: ‘People are all depressed and alone and doomscrolling’
By Sasha RogelbergJune 12, 2026
4 hours ago
SpaceX’s IPO could be largest in history. Here’s how it compares to previous record-holders
Startups & VentureSpaceX
SpaceX’s IPO could be largest in history. Here’s how it compares to previous record-holders
By Mia OsmonbekovJune 12, 2026
4 hours ago
Why is it so hard to get ROI from AI? Because building from first principles isn’t easy
NewslettersEye on AI
Why is it so hard to get ROI from AI? Because building from first principles isn’t easy
By Jeremy KahnJune 11, 2026
12 hours ago
SpaceX lowballed its bankers on fees. Goldman Sachs has another way to win big
Startups & VentureFinance
SpaceX lowballed its bankers on fees. Goldman Sachs has another way to win big
By Shawn TullyJune 11, 2026
13 hours ago

Most Popular

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
2 days ago
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
Environment
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
By Catherina GioinoJune 9, 2026
3 days ago
Current price of oil as of June 11, 2026
Personal Finance
Current price of oil as of June 11, 2026
By Joseph HostetlerJune 11, 2026
22 hours ago
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
Innovation
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
2 days ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
4 days ago
SpaceX's record IPO has Wall Street torn between a Musk 'holy grail' and a $135-per-share leap of faith
Startups & Venture
SpaceX's record IPO has Wall Street torn between a Musk 'holy grail' and a $135-per-share leap of faith
By Marco Quiroz-GutierrezJune 11, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.