Economist Says Decision On AT&T-Time Warner Merger Makes Sense
INDIANAPOLIS -- A federal judge gave the green light to cable providers AT&T and Time Warner to merge.
The Justice Department sued to block AT&T's $85 billion buyout of Time Warner, citing antitrust concerns and possible higher prices for consumers. However, University of Indianapolis economist Matt Will says the judge's decision on this particular case makes sense.
"I've read the ruling and people need to read the ruling and not be misinterpret it," Will said. "This is not a big deal, because this a content and delivery merger. AT&T's going to have some content and some delivery of it, but they're still going to be competing with Facebook, Google, and Amazon."
Will adds the industry of content creation and delivery has expanded beyond just Cable and TV platforms thanks to the Internet which is why the merger is legal in his opinion. But he also criticizes the companies for not being innovative.
"These mergers come from laziness, because the Google's and the Amazon's of the world are innovative," said Will. "Yet the old style corporations are simply stuck and not knowing what to do, how to compete."
The DOJ is looking at steps it can take moving forward following the ruling. It's not clear if they will appeal.
(PHOTO: Spencer Platt/Getty Images)