This week’s decision by U.S. District Judge Richard Leon to allow AT&T and Time Warner to complete their merger will bring to a close a deal that has been pending for almost two years.
The AT&T Ruling Shows That U.S. Regulators Don’t Understand Media’s Present — or Future
The government is focused on today while consumers look to tomorrow.
June 13, 2018
HBR Staff/George Caswell/Steven Errico/Getty Images
Summary.
A court decision to allow AT&T and Time Warner to complete their merger will bring to a close a deal that has been pending for almost two years. Much as Netflix, YouTube, Amazon, and others use detailed viewing habits to decide what to produce and for whom, the merged entity will have the ability to leverage technology to offer viewers what they want, where they want it. The internet has fundamentally disrupted every aspect of the media industry. The incumbents’ aging infrastructure and a mountain of antiquated federal and local regulations that constrain their ability to innovate have left them struggling to adapt. These legal challenges are an attempt to catch up to the insurgents, not lead the revolution.