10 Myths About Media Attorney

Apr 11, 2018  
Media Attorney

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Using that 9% rate, Shapiro came to his conclusion about the price increase should the merger go through. The government sued to stop AT&T's bid to take over of Time Warner, CNN's parent company, arguing that it violates antitrust law because the merger will raise prices for consumers and harm competition, like Charter, because AT&T would be able to withhold certain networks from its competitors as a negotiation tactic, and attract more customers to their services. AT&T has argued that prices would not necessarily go up, and that it would have no reason to keep its content from competitors because they'd then make less ad revenue. Attorneys for AT&T and Time Warner have argued that the acquisition is necessary for AT&T to compete with the likes of Facebook, Apple, Amazon, Netflix and Google, as those companies gain share in the content market. Government lawyers have argued that AT&T and Time Warner are not directly competing with those companies in the same way. But during cross-examination with AT&T and Time Warner lead attorney Dan Petrocelli, Bewley acknowledged that initially the 9% result was actually 5%. Had Shapiro used the 5% subscriber loss estimate in his analysis, he would have found no price increase due to the merger, Petrocelli said. Bewley said he decided to make adjustments to his initial findings due to where Turner fell on different categories of television programming weighted according to popularity. Bewley said Turner fell somewhere between category two (moderately popular programming) and category three (niche channels); as such, the firm made an exception to its methodology to place Turner in another group.

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