Randall Stephenson, CEO of AT&T said that they were taking efforts for buying the leading entertainment and media company Time Warner. This attempt of the company was to offer two firms to serve customers better by reducing the pay rates for TV. If the government rejected the deal, then it could increase prices for the TV. While speaking in the US District Court in Washington, Stephenson said that Judge Richard Leon who will be the responsible for taking a decision related to the case if the US$ 85 billion deal may proceed or not.
He was thinking to incorporate the businesses by combining AT&T’s knowledge with Time Warner’s expertise along with their huge customer base, Stephenson added. Additionally, he strongly disagreed with the government’s judgment that transaction would increase prices for their customers. He said, “The assumption is ridiculous and it doesn’t make any logic.” This deal will help AT&T, which has the largest company of payTV – DirectTV, which will offer ease to build an inexpensive online product, as product will be based on advertisements.
Within a judgment, the government said that deal will increase the cost of TV and decline the offer content to offer the cheaper video services. Nevertheless, Stephenson’s corroboration explained that this will not be the situation after the deal. Jeff Bewkes, Chief Executive Officer of Time Warner advocated the statement of Stephenson. He concurred by saying that deal will be helpful to offer something new to the customers and to compete with their competitors for advertising.
The Justice Department showed that email exchange between Stephenson and Facebook’s CEO Mark Zuckerberg regarding the ways to work in the field of advertisement.
The government called an accounting expert – Ron Quintero, who has done an evaluation of AT&T business which can be used to oppose the merger. He explained that in many of the calculations for analysing AT&T business, he has estimated just the percentage and received no data to analyse and to support expenditures of the company. The trail was started in March; the final decision will be concluded until the end of this month.