Telecoms monster AT&T has acquired Time warner for nearly eighty five billion dollars. Promptly accepted by Time Warner officials, the bid has given the company full control and possession of their assets. This acquisition has several consequences for both consumers and businesspeople. Whether you are a businessperson or a consumer, this may affect you in more ways than you think, price hikes monopolies and more DirecTV.
The first question that seems to pop up is the motive behind the massive acquisition. Market experts have implied that the company is trying to broaden their horizons and open up new opportunities for business. Ever since comcast acquired NBC in 2009, AT&T has been significantly lagging behind in terms of profit and sales. Whether money is the motive or not is a topic of discussion but one undeniable fact is that they desire a monopoly in their business. The control over their customers that has been made possible by this deal is convincing and also sways consumers to the side of AT&T in desire of something new. This monopoly means a lot for both consumers and business owners. This deal has basically instilled a deadlock between comcast and AT&T because no other companies can even think of stepping up against these two giant conglomerates.
What does this mean for us, as consumers? The unification of the two companies will result in a more cohesive experience for most customers. Once AT&T finish their gradual move into the Canadian market, we will benefit from the synchronized experience of our TV and phone systems working together. The acquisition of Time Warner is timed to be just before the release of DirecTV, their new TV service that ideally will be able to incorporate all of the Warner Brothers movies into its selection of channels. AT&T will also become a large player in the media scene, with customers receiving several added benefits to their phone plans. To conclude, the merger means generally good things for the public.
Though AT&T becomes a much more predominant force in the media scene, the merging does not give them an unfair advantage that would allow severe price spikes due to a clause called the Sherman Antitrust Act. Even though we will see more of movies with bigger budgets, it will also open up the horizons of the company for future endeavors. This acquisition is the biggest of the year, and will continue to produce both negative and positive changes on an economic and business scale. To conclude, 85 billion dollars have been spent in the biggest merger of the year to unite these two companies.