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Recode

Must Read No. 3: Here’s the Argument Explaining Why It Makes No Sense for AT&T (or Even Apple, for That Matter) to Own Time Warner

Oct 23, 2016  •  Post A Comment

“Too bad the [$85 billion AT&T/Time Warner] deal doesn’t make much sense,” writes Edmund Lee on the Recode website.

He continues, “Here’s why: A company that owns pipes, whether over the air or through the ground, doesn’t actually benefit from owning the content flowing through those pipes.

“Time Warner, which owns HBO, CNN, Warner Bros. and a lot of sports rights via Turner, loses its value if it can’t sell its content to every possible distributor, including AT&T’s main rivals, such as Comcast and Verizon.”

While, in a nutshell, that’s Lee’s argument, we urge you to click here, which will take you to his original article, where you can read all the details of his thesis.

 

 

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