Lawmakers plan hearings on AT&T-DirecTV deal

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WASHINGTON — Con­gres­sional lawmakers promised Monday to hold hearings into AT&T’s proposed $48.5 billion acquisition of DirecTV.

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Traders gather at the post that handles AT&T on the floor of the New York Stock Exchange. Priming itself for the age of Internet-delivered video, AT&T Inc. said Sunday it would buy DirecTV for $48.5 billion in cash and stock.  RICHARD DREW/ASSOCIATED PRESS
RICHARD DREW/ASSOCIATED PRESS
Traders gather at the post that handles AT&T on the floor of the New York Stock Exchange. Priming itself for the age of Internet-delivered video, AT&T Inc. said Sunday it would buy DirecTV for $48.5 billion in cash and stock.

“The proposed AT&T and DirecTV merger would be the fourth-largest telecommunications merger in history,” four top House Judiciary Committee members said. “The committee has a strong record of reviewing proposed transactions that could have a significant impact on consumers and the competitive marketplace.”

Senate Judiciary Committee Chairman Patrick J. Leahy, D-Vt., implied that his panel would bring in top company executives for a hearing as well.

“With this latest proposed merger, I am concerned that the telecommunications marketplace is trending even further toward one that favors big companies over consumers,” Leahy said.

Both committees held hearings recently on Comcast’s proposed purchase of Time Warner Cable.

Congress has no direct role in approving major corporate mergers, which are formally reviewed by regulators. But hearings on Capitol Hill allow lawmakers to publicly question company executives. The hearings also can give consumer groups, competitors and other opponents a forum to air complaints.
The AT&T-DirecTV deal will need approval from the Federal Communications Commission and either the Justice Department or Federal Trade Commission.

The FCC and Justice Depart­ment already are reviewing the Comcast-Time Warner Cable deal.

ON WALL STREET
  • The three major indexes were down in premarket trading Monday as investors reacted to the AT&T-DirecTV deal, which was announced late Sunday.
  • AT&T and DirecTV both opened lower Monday and never recovered. AT&T ended the day down 36 cents, or 1 percent, at $36.38. DirecTV fell $1.53, or 1.8 percent, to $84.65.

                                                                                                                                                                                  – Associated Press

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Discussionstarter
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Discussionstarter 05/20/14 - 04:50 pm
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The consumer is going to get screwed either by AT&T or Comcast.

This is out of control.

I thought when Columbia County spent millions on the internet loop... the residents would benefit with respect to lower internet costs. Not.

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