Cuban: AT&T/Time Warner will create more competition

Cuban: AT&T/Time Warner will create more competition

Posted 5 minutes ago by Katie Roof (@Katie_Roof)
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While many people are arguing that the proposed $85 billion AT&T and Time Warner deal would be bad for consumer choice, billionaire Mark Cuban has a contrarian viewpoint. The merger would lead to “more competition” he tells TechCrunch.

Cuban, who made his money through a different media acquisition, thinks the combination would help challenge the tech giants like Facebook, Google and Amazon who are “dominating digital content.” Right now, “AT&T and Time Warner lag way behind.”

He believes that Time Warner, which owns properties like HBO and CNN, would benefit from additional resources for developing its web properties. “Traditional content needs help transitioning to compete with app-driven content,” he argued.

Cuban also hopes the mega merger will be approved by regulators because he feels it “isn’t as impactful” as Facebook’s purchases of Instagram or WhatsApp. (He invests in a competing messaging service called Dust).

But others disagree with Cuban’s assessment. An array of politicians, from Bernie Sanders to Donald Trump, have questioned the legitimacy of the deal.

The Clinton campaign voiced skepticism, but took more of a wait-and-see approach.

And there have been attempted media acquisitions that did not work out. The Comcast-Time Warner Cable deal was called off and AT&T’s attempted T-Mobile acquisition was scrapped.

But this wouldn’t be the first time that a television provider successfully acquired television content. Comcast bought NBC Universal in a similar deal in 2011. And AT&T recently acquired DirecTV, emboldening its service provider business.

Disclosure: TechCrunch is owned by Verizon, which competes with AT&T.

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Crunchbase

  • Mark Cuban

    • Bio Since the age of 12, Mark has been a natural businessman. Selling garbage bags door to door, the seed was planted early on for what would eventually become long-term success. After graduating from Indiana University - where he briefly owned the most popular bar in town - Mark moved to Dallas. After a dispute with an employer who wanted him to clean instead of closing an important sale, Mark created …
    • Full profile for Mark Cuban
  • Time Warner

    • Founded 1985
    • Overview Time Warner, Inc. operates as a media and entertainment company in the United States and internationally. It operates in four segments: Cable, Filmed Entertainment, Networks, and Publishing. - The Cable segment offers video, high-speed data, and voice services over its broadband cable systems to residential and commercial customers, as well as sells advertising time to various national, regional, …
    • Location New York, NY
    • Categories Broadcasting, Content Delivery Network, Film
    • Website http://www.timewarner.com
    • Full profile for Time Warner

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