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How Do Lawmakers Change Their Tone On AT & T And Time Warner Deal

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“Lawmakers Change Their Tone on AT&T and Time Warner Deal” By: Cecilia Kang

Link:http://www.nytimes.com/2016/12/07/technology/att-and-time-warner-deal-hearing.html?_r=0

Summary: In October 2016, AT&T and Time Warner announced a merger plan worth roughly 85.4 billion. The plan consists of AT&T purchasing Time Warner in an effort to create a “mobile video powerhouse”. The companies pitched a plan where they would lower prices and build more wireless infrastructure. The legal approach for their hearing presented the two companies as weaker competitive rivals within the cable industry. Initially, lawmakers were weary of the deal, unsure of the effects that may take place as the result of the mega-merger. However, the stance on this view has shifted, at least for the lawmakers. …show more content…

Lawmakers now claim that they are looking out for the consumers’ and competitors’ best interests, so as not to hinder any competition or new innovations. Others have weighed in on the debate such as Senator David Perdue, who claimed that this merger is simply an example of capitalism. President-elect Donald Trump claims that this type of merger will be blocked. Lastly, consumer groups have rejected the portrayals of AT&T and Time Warner as being weaker rivals, claiming that the merger of these two companies will create a powerhouse that every network and cable company will need to compete and negotiate with, all while pushing out smaller streaming services such as Sling TV and Hulu. Consumer groups ultimately fear that this merger will extinguish new

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