AT&T a giant in the wireless phone business has just announced a deal to buy Time Warner a TV producer for a whopping 86 billion dollars. This deal will create a giant in the media world. AT&T already has over 158 million subscribers between their TV subscriptions, and cellular customers. With the purchase of Time Warner, the producers of HBO, CNN, TNT, as well as Warner Bros. movie studio will allow the AT&T super giant t provide brand exclusives to its customers. AT&T is a telecommunication giant that’s root date back to its monopoly over telephone services in the US and Canada. While it was made to break up into 7 different companies by the US Government they have almost all been taken absorbed back into AT&T or Verizon through mergers in the past 30 Years. Time Warner is also a giant by its own sake were it has continually taken over other business through mergers. This allowed the business to prospered through tough times. Though the just sold their Time Warner Cable to Charter Communication a satellite internet company just recently.
The media world is ever changing and it’s not going in favor of traditional TV viewing. As Netflix, and other cheap media sites
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The biggest challenge for this merger is being approved by the US government. Mergers of this scale especially when they concern public services like telecommunication will go through intense scrutiny. This has been the crushing force for many mergers in the past and even if it does no stop this merger it will slow it down for several months or even years. If the merger is approved their will probably several conditions set place that could range from net neutrality to price standardization to prevent price gouging. Along with government regulations many competitors like Verizon may try to copy this idea and go after these ever-changing markets with new haste to keep themselves from falling behind the telecommunication giant