Makan Delrahim, DOJ Antitrust Chief Who Challenged AT&T-Time Warner Merger, Takes Different View Of WarnerMedia Spinoff

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Makan Delrahim, who as the Justice Department’s antitrust chief during Donald Trump’s administration challenged AT&T’s combination with Time Warner, has a different view of the planned spinoff of WarnerMedia

“AT&T’s combination with TW was motivated by an effort to salvage a bad deal made for DirecTV, which was why they couldn’t execute it well,” he added.Now that DirecTV and TW have been spun off, AT&T can compete to provide American consumers the best mobile communications service, and the combined Discovery/TW can compete with other content companies to deliver the best content to American consumers.

Almost a year later, in November, 2017, the Justice Department sued to block the deal, leading to a landmark antitrust showdown the following spring. A federal judge ruled in favor of AT&T, and an appellate court upheld the decision. A remedy that was discussed during the DOJ review was for AT&T to spin off assets, like Turner Networks or DirecTV, but the merging companies rejected such an approach.

In Washington, lawmakers have been sounding the alarm for stricter antitrust enforcement, particularly when it comes to tech giants like Facebook, Google and Amazon. Sen. Amy Klobuchar , who chairs the antitrust subcommittee, recently published a book,and recently proposed legislation that would make it easier for the government to challenge mega mergers.

“If I felt like we had the risk of that kind of experience again, I would not have signed up for this transaction,” Stankey said on CNN on Monday. “I believe that there is not reason this shouldn’t be a straightforward, very clean approach in the regulatory process.”

 

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