In a matter of days, AT&T will merge with Time Warner.
The ruling by Judge Richard Leon of the U.S. District Court for the District of Columbia ends a six-week antitrust trial where U.S. regulators argued that the $85 billion deal would give AT&T undue leverage against rival cable providers that relied on Time Warner’s content.
Wall Street expert Daniel Ives who’s also Chief Strategy Officer at GBH Insights says make no mistake. This mega deal is all about content.
“Look at Netflix. Netflix has changed the landscape in the tech media world. I think it speaks to why the AT&T/Time Warner deal needed to get done and getting green lighted by Judge Leon was key because ultimately it’s really going to be destroy the book. And, watch Comcast put in a bilion dollar bid for 21th Century Fox in the next 24 hours. This would not have happened unless the Judge had cleared this day. This is just the start in the tech media sector as its all about content cord cutting. Traditional media is now starting to get in the game.”
Ives was a guest on McIntyre in the Morning.
Sharon Reardon, KABC News