'AT&T' And 'Time Warner' Deal Optimistic As Lawmakers Shift Mood On The Deal, President-Elect Trump Critical Of The Merger

AT&T and Time Warner faced the Senate on Capitol Hill last Wednesday. AT&T-Time Warner $85.4B merger faced a lot of issues with many lawmakers including President-elect Trump when initially released in October. Being faced with questions of putting too much power in one company and the threat to freedom of information, the Senate's view of the merger seem to have pivoted pre and post-election.

AT&T and Time Warner were questioned by Senate Judiciary subcommittee members in charge of regulatory agencies involving mergers and acquisitions. The questions were presented in a more modern manner, commenting on whether a traditional merger could prove to be outdated. In a report by New York Times, the head of the Judiciary Committee Senator Charles E. Grassley said that they want to make sure that given the current video landscape, case in point Netflix, Amazon Prime, Facebook, and Google, growth in the industry will not be stunted by allowing tougher competition beneficial to customers.

President-elect Donald Trump had been vocal about hindering the AT&T-Time Warner merger. But, Senators are concerned as to the reason why. Senator Richard Blumenthal was reported by Reuters saying that he finds it abhorrent that the President-elect will enforce the law based on his personal sentiments of a news coverage. However, at the Senate anti-trust hearing, Recode reported billionaire investor Mark Cuban saying that AT&T and Time Warner merger is for consumers who prefer the old-fashioned way of enjoying television while sitting on a couch with a cold beverage and remote.

While AT&T and Time Warner have not yet officially filed their merger for regulatory review, the antitrust hearings will be in aid of the regulators at the Justice Department and FCC. When the deal was initially announced, many were cautious with the merger. But, consumer groups seem to think otherwise. They believe that the merger could create better alternatives to cord-cutters and tougher competition among streaming providers.