Sunday, June 17, 2018
Business

Court approves AT&T purchase of Time Warner

WASHINGTON — A federal judge has approved AT&T’s merger with Time Warner. He rejected the government’s argument that it would hurt competition in pay TV and cost consumers hundreds of millions of dollars more to stream TV and movies.

U.S. District Judge Richard Leon announced the decision Tuesday, bringing the biggest antitrust trial in years to an end. The ruling blesses the $85 billion merger, one of the biggest media deals ever. It allows AT&T, a phone and pay-TV giant, to absorb the owner of CNN, HBO, the Warner Bros. movie studio, "Game of Thrones," coveted sports programming and other "must-see" shows.

The Department of Justice could decide to appeal the verdict. AT&T did not immediately respond to a request for comment.

Now that a federal judge has approved AT&T’s $85 billion takeover of Time Warner, other companies are likely to rush to consolidate.

Tuesday’s ruling signaled that federal regulators will have a hard time stopping companies from getting bigger by gobbling up rivals and the programming they own. Even if a company doesn’t need to get bigger right away, it might need to do so to prevent a competitor from overshadowing it.

For starters, expect Comcast to make a bid for Fox’s entertainment business as early as Wednesday. Disney has made a $52.4 billion all-stock offer for the bulk of Twenty-First Century Fox, including the studios behind the "Avatar" movies, "The Simpsons" and "Modern Family." Comcast has promised to top that. AT&T’s favorable ruling would seem to clear any regulatory hesitation.

AT&T says it will complete its purchase of Time Warner by June 20 now that a federal judge has cleared the deal.

AT&T general counsel David McAtee says the company is "pleased" with the verdict after a "full and fair trial on merits."

Government lawyer Makan Delrahim says the Department of Justice is "disappointed" with the decision. In a statement, he warns that the pay-TV industry will be "less competitive and less innovative" as a result of merger.

The government could appeal. Delrahim says officials will review the decision and "consider next steps in light of our commitment to preserving competition for the benefit of American consumers."

In after-market trading following the ruling, shares of Time Warner rose nearly 5 percent and AT&T shares fell 1.6 percent. Shares of Twenty-First Century Fox rose more than 4 percent, while Disney’s stock dropped slightly more than 1 percent. Disney has a deal to buy the bulk of Fox, but Comcast is now expected to make a counterbid, especially with the favorable ruling for AT&T. Comcast shares fell 3.3 percent, though.

Shares of both T-Mobile and Sprint rose; their proposed combination is pending.

U.S. District Judge Richard Leon rejected the government’s argument that the AT&T-Time Warner combination would hurt competition in pay TV and cost consumers hundreds of millions of dollars more to stream TV and movies.

Comments
Your barista is a robot. Should it be friendly?

Your barista is a robot. Should it be friendly?

SAN FRANCISCO - The cold, steely arm of Fernando the Barista swirled the foam of my matcha latte, set it down gently, and waved goodbye from inside a glass case. San Francisco, 2018. Where you can get robot pizza and robot salad, and now, a robot mat...
Published: 06/16/18
Extending Albert Whitted’s runway could help Innovation District take off

Extending Albert Whitted’s runway could help Innovation District take off

ST. PETERSBURG — Albert Whitted Airport wants to extend its main runway. But what would benefit the airport could also benefit the St. Pete Innovation District.Moving the runway would ease building restrictions around the airport, allowing the Univer...
Published: 06/15/18
Updated: 06/16/18
Florida’s unemployment rate drops to 3.8 percent

Florida’s unemployment rate drops to 3.8 percent

Just when it seemed like Florida’s unemployment rate couldn’t get lower, it did. According to the state figures out Friday, Florida’s jobless rate dipped to a near 18-year low of 3.8 percent in May after holding steady at 3.9 percen...
Published: 06/15/18
St. Petersburg home becomes finalist in HGTV contest

St. Petersburg home becomes finalist in HGTV contest

ST. PETERSBURG — A house in St. Petersburg’s Old Northeast is a finalist in HGTV’s Ultimate House Hunt contest. Built in 2007 in the Mission Revival style, the 4,000-square-foot home a block from Coffee Pot Bayou is among 12 nationwide in the "curb a...
Published: 06/15/18
Florida’s first not-for-profit coding school is opening in St. Petersburg

Florida’s first not-for-profit coding school is opening in St. Petersburg

ST. PETERSBURG — Filling in a hole that was left by The Iron Yard’s exodus last year, a new computer coding school will open its doors to its first class in downtown St. Petersburg on July 23.The Academy at Suncoast Developers Guild will operate thro...
Published: 06/15/18
Tampa-based Robbins Property Associates pays $43-million for Boynton Beach apartment community

Tampa-based Robbins Property Associates pays $43-million for Boynton Beach apartment community

Tampa-based Robbins Property Associates, has bought Aventine at Boyton Beach, a 216-unit apartment community, for $43 million.Aventine, garden-style apartments that are 95 percent occupied, will be renovated and renamed "Verona at Boynton Beach."It i...
Published: 06/15/18
Florida craft beer guild: Big Beer is pushing us out of Publix

Florida craft beer guild: Big Beer is pushing us out of Publix

The national battle between Big Beer and local craft breweries is playing out on the shelves of your neighborhood Publix — and some favorite Florida brewmakers are losing.The guild that represents Florida brewers says at least 12 small breweries have...
Published: 06/15/18
Accused of racial profiling, Lowe’s ends policy of checking customer receipts as they leave

Accused of racial profiling, Lowe’s ends policy of checking customer receipts as they leave

Memorial Day weekend was supposed to bring three productive days of home improvement for Will Mega, a dean at a North Philadelphia charter school.He’d go to two Lowe’s locations near his home in Philadelphia’s Wynnefield neighborhood for a grill and ...
Published: 06/15/18
McDonald’s to test alternatives to plastic straws in U.S.

McDonald’s to test alternatives to plastic straws in U.S.

NEW YORK — McDonald’s said Friday it will switch to paper straws at all its locations in the United Kingdom and Ireland, and test an alternative to plastic ones in some of its U.S. restaurants later this year.The burger chain and other fast-food comp...
Published: 06/15/18
Strange brew? Tampa Bay group hopes to grow hops and medical marijuana in the same spot

Strange brew? Tampa Bay group hopes to grow hops and medical marijuana in the same spot

ST. PETERSBURG --- Among topics that stir passionate interest, two that rank high are medical marijuana and craft beers.A group of Tampa Bay entrepreneurs has ambitious plans to profit from both.They are leasing a vast warehouse space in St. Petersbu...
Published: 06/15/18