US: AT&T, Time Warner offer merger details to quell senators’ concerns

AT&T and Time Warner have offered a response to a group of Democratic senators concerned about the companies’ proposed $85 billion merger.

In a letter, AT&T CEO Randall Stephenson and Time Warner CEO Jeff Bewkes outlined how the transaction will benefit consumers and promote competition.

In particular, the companies said that the merger will help lift some of the bargaining friction between content providers and distributors and allow for faster innovation.

“AT&T and Time Warner have both encountered such friction as they have sought to bring innovations to market. That friction has kept consumers from getting the full suite of innovative features that they want,” the companies wrote.

The companies also said that the merger will better position them to compete on a nationwide basis with cable companies by offering more programming options at more attractive prices. AT&T noted DirecTV Now as an example of that but promised there is more to come in terms of innovation and experimentation for video services.

Full Content: US Senate

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.