Skip to main content

AT&T insists the FCC has no basis for halting its merger with Time Warner

AT&T
Remember when your parents forbade you from seeing your high school sweetheart, and you responded petulantly, “You can’t stop me”? If so, you may get a case of deja vu from the latest drama between AT&T and the FCC.

Insisting that it has a plan to rebut any potential scrutiny from the Federal Communications Commission, AT&T said late last week that regardless of what the government body (or the president-elect) has to say, its merger with Time Warner cannot be stopped by governmental action.

On January 6, the telecommunications giant asserted in regulatory filings that it ought to be able to carry out its $85.4 billion acquisition of Time Warner without FCC approval, as it doesn’t plan to transfer any FCC licenses between the two companies.

“Time Warner has conducted a review of all licenses that it holds that are granted by the FCC,” AT&T said in a filing with the Securities and Exchange Commission. “While subject to change, it is currently anticipated that Time Warner will not need to transfer any of its FCC licenses to AT&T in order to continue to conduct its business operations after the closing of the transaction.”

That said, it’s unclear as to just how AT&T and Time Warner plan to get rid of Time Warner’s FCC licenses before the merger. As Bloomberg reported, “Time Warner has been looking to transfer or sell its licenses to another broadcaster for some time, according to a person familiar with the matter. Time Warner can contract with third parties instead of owning the licenses, the person said.”

Of course, that’s not the only issue the companies have to contend with before celebrating a happy union. President-elect Donald Trump has previously indicated that he is opposed to the merger, and on Friday, a transition official told Reuters that his opinion has not changed.

On February 15, Time Warner shareholders will hold a meeting to determine whether they’ll approve the deal.

Editors' Recommendations

The judge in the T-Mobile merger trial isn’t interested in a drawn-out affair
t mobile sprint merger ceo

The trial that ultimately decides whether T-Mobile and Sprint can merge began in a Manhattan federal court Monday, and it's clear that the presiding judge isn't interested in a lengthy affair. U.S. District Judge Victor Marrero asked both sides to skip opening arguments to begin questioning witnesses immediately, and trim their witness lists.

Marrero, who has also presided over high-profile cases including the legality of the Patriot Act and Trump's tax returns, said he didn't want to be "beaten over the head" with testimony, according to the Wall Street Journal.

Read more
The FCC has officially approved the merger between T-Mobile and Sprint
susan collins net neutrality fcc commissioners

The Federal Communications Commission has officially approved the merger between T-Mobile and Sprint. A few weeks ago, the FCC voted to approve the deal, but now it has released its official approval order and statements on the merger.

In the statements released by the FCC, the Commission made it clear that the approval was largely in an effort to create stronger 5G networks in the U.S. T-Mobile and Sprint have long argued that a merger would speed up the rollout of 5G, and it seems like the FCC agrees. The vote was approved 3-2, with the three Republican members voting in favor and two Democrats opposed.

Read more
Fiat Chrysler and Peugeot Citroen reach an agreement to merge
Peugeot 308 GTi

This morning, Wednesday, October 30, Fiat Chrysler (FCA) and Peugeot Citroen (PSA) announced they were in talks about a possible merger that would create the fourth-largest automaker by volume in the world. Several hours later the story was updated on the Wall Street Journal website with a report that the two sides had come to terms, pending ratification by both corporate boards.

By the terms of the agreement, Peugeot’s CEO Carlos Tavares would become CEO of the merged company, and FCA chairman John Elkann would become chairman. Together they would oversee an entity with $48.4 billion in market share. The Peugeot board was the first to agree in principle with the merger Wednesday morning. Exor, the Agnelli family holding company that controls FCA, later agreed to complete the merger, subject to board approval.

Read more