«It’s all about CNN,» a person with knowledge tells the Financial Times
AT&T Time Warner
Regulators are demanding that AT&T sacrifice cable news powerhouse — and frequent target of President Trump — CNN in order for its merger with Time Warner to be approved, the Financial Times reported Wednesday.
“It’s all about CNN,” one person with direct knowledge of the talks between the company and Justice Department told the newspaper. That individual told the Financial Times that the deal would be approved if CNN were to be sold.
Trump has repeatedly railed against CNN as “fake news” both as a presidential candidate and since taking office and opposed the merger itself at campaign rallies, but with similar vertical mergers having gained regulatory approval in recent years and the general pro-business slant of the Republican party, most observers expected the $85 billion deal to go through by the end of this year.
Also Read: AT&T Exec Suggests Time Warner Deal May Not Close by Year’s End After All
But at an investor conference Wednesday morning, AT&T CFO John Stephens said that while he still expects the deal to go through, the finish line is not imminent.
“All approvals have been received, but for the [Department of Justice],” Stephens said. “We are in active discussions with the DOJ. Those are continuing on. I can’t comment on those discussions, but with those discussions, I can now say that the timing of the closing of the deal is now uncertain.”
“With regard to the transaction, everything continues as we’ve expressed in the past,” he continued. “If you look at this vertical merger, you can see that these types of mergers bring benefits to customers, and have very routinely been approved by the DOJ and the federal government. In fact, a vertical integration — vertical merger like this hasn’t been blocked for over 40 years.”
The deal, announced last October, would create a media behemoth with assets including the Warner Bros. studio, CNN, HBO, the Turner networks, AT&T’s wireless business and DirecTV.
10 Biggest Billion-Dollar Entertainment Deals in 2016 (Photos)
Media and entertainment dealmakers returned in full force this year after a quiet 2015, as there were nine mergers and acquisitions valued at more than $1 billion — from Chinese buyers such as the Dalian Wanda Group to AT&T, which agreed to acquire Time Warner for $85 billion. Here’s a rundown of the biggest. Various
10. Disney buys a minority stake in BAMTech
Price tag: $1 billion
In August, the Mouse House announced that it paid $1 billion for a 33 percent stake in streaming video technology company BAMTech, which was spun off from Major League Baseball’s MLB Advanced Media. Disney plans to use BAMTech’s technology to launch a standalone ESPN streaming service – but without the same content as linear ESPN. Disney
9. Dalian Wanda Group buys Dick Clark Productions
Price tag: $1 billion
The real estate and entertainment conglomerate owned by China’s richest man continues to snap up showbiz companies by the billion, acquiring the Golden Globes and American Music Awards producer for a cool $1 billion earlier this month. Dick Clark Productions
8. Rovi acquires TiVo
Price tag: $1.1 billion
Video technology firm Rovi Corp., bought the pioneering live-TV recording tech company for $1.1 billion in a deal that was finalized in September. After the deal was complete, Rovi adopted the better-known TiVo name. Getty Images
7. AMC Theatres buys Carmike Cinemas
Price tag: $1.2 billion
Wanda-owned AMC Theatres acquired Carmike, the U. S.’ fourth-largest exhibitor, forming the biggest theater chain in the country with more than 600 theaters. That surpasses Regal Entertainment, which operates 565 locations. AMC/Carmike
6. AMC Theatres buys Odeon & UCI Cinemas
Price tag: $1.2 billion
AMC also added Odeon & UCI Cinemas, Europe’s biggest chain, to its ever-expanding suite of cinemas. AMC will rename the company to Odeon Cinemas Group and maintain its London headquarters. AMC/Odeon & UCI
5. Dalian Wanda Group buys Legendary Entertainment
Price tag: $3.5 billion
Wanda was responsible for the first megadeal of 2016, when it acquired the “Jurassic World” production company for $3.5 billion. Legendary lost $500 million in 2015, but its action-packed fare such as “Warcraft” is popular in China’s fast-growing movie market. Legendary/Wanda
4. Comcast’s NBCUniversal buys DreamWorks
Price tag: $3.8 billion
The blowout success of animated films like “Zootopia” and “Finding Dory” was one of the stories of 2016, and NBCU doubled down on the genre by adding the “Kung Fu Panda” and “Shrek” studio to its fold. DreamWorks
3. Lionsgate merges with Starz
Price tag: $4.4 billion
The “Hunger Games” studio and premium cable channel announced their merger plans in June, a year after telecom billionaire and major Starz shareholder John Malone bought a stake in Lionsgate. Starz will become an independently run subsidiary of Lionsgate once the deal is officially approved. Lionsgate/Starz
2. Verizon buys Yahoo
Price tag: $4.8 billion – or maybe less
The embattled Internet 1.0 company finally found its lifeboat, selling its core business to Verizon for $4.8 billion in July, eight years after rejecting a $45 billion bid from Microsoft. But after the extent of Yahoo’s 2014 hack was revealed, Verizon was pushing for a $1 billion discount, and has been taking a second look at the deal. Verizon/Yahoo
1. AT&T agrees to acquire Time Warner
Price tag: $85.4 billion
AT&T agreed to buy Time Warner, combining two century-old companies to create a content and distribution powerhouse in the biggest media deal since the ill-fated 2000 AOL-Time Warner merger. One caveat: Donald Trump, who has been an outspoken critic of Time Warner’s CNN, had threatened to block the deal. However, a Wall Street-friendly Republican Congress could provide a smoother path. AT&T/Time Warner Previous Slide Next Slide
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Rewind 2016: From China’s Dalian Wanda Group to AT&T, deep-pocketed buyers were chasing content all year
Media and entertainment dealmakers returned in full force this year after a quiet 2015, as there were nine mergers and acquisitions valued at more than $1 billion — from Chinese buyers such as the Dalian Wanda Group to AT&T, which agreed to acquire Time Warner for $85 billion.
