Why AT&T's Time Warner Deal Is Under Such Scrutiny

The transcript discusses the complexities of vertical transactions, particularly focusing on the AT&T-Time Warner deal. It explores the rarity of such deals being blocked, the scrutiny required for large transactions, and the implications of market concentration. The conversation also touches on changes in antitrust law, the impact of tech companies like Amazon entering new markets, and potential arguments for allowing the AT&T-Time Warner merger.

What is a key reason vertical transactions are rarely blocked?

• They are not subject to antitrust laws.

• They involve only tech companies.

• Behavioral remedies are often sufficient.

• They are usually small in scale.

Why might the AT&T and Time Warner deal require deeper scrutiny?

• It is a very large transaction.

• It is a horizontal integration.

• It is a new type of business model.

• It involves international companies.

What makes it challenging for large companies to merge?

• The lack of available technology.

• The higher concentration of market power.

• The complexity of their operations.

• The need for international approval.

What is a potential effect of changes in antitrust law on vertical transactions?

• Increased competition in the market.

• A chilling effect on future deals.

• More opportunities for small businesses.

• A decrease in legal scrutiny.

How did the market react to Amazon's acquisition of Whole Foods?

• It was blocked by antitrust laws.

• It was expected to fail due to competition.

• It was seen as a horizontal deal.

• It was considered a vertical deal with no issues.

What argument could be made in favor of the AT&T and Time Warner deal?

• Time Warner is the only content provider.

• There is a limited amount of content available.

• The deal will eliminate competition.

• There is a wide range of content providers.

What was a key factor in the Comcast NBC Universal case?

• It was a horizontal integration.

• The companies were of equal size.

• Comcast agreed to continue licensing NBC's content.

• The deal was blocked by the government.