FCC Names Power Lineups to Review Big Media Mergers

Media

Published: July 8, 2014 2:17 pm

Last Updated: April 27, 2020 9:12 pm

The Federal Communications Commission (FCC) has named its investigative teams to review whether or not the massive media mergers that have been announced are actually in the public interest — as the major players say they are. One FCC team will review the proposed $45.2 billion merger between Comcast Corp. (NASDAQ: CMCSA) and Time Warner Cable Inc. (NYSE: TWC), and another will scope out the proposed $48.5 billion deal between AT&T Inc. (NYSE: T) and DirecTV (NASDAQ: DTV). The side deal between Charter Communications Inc. (NASDAQ: CHTR) and Comcast will also be reviewed.

Leading the FCC team in the Comcast-Time Warner review is Hillary Burchuk, a former antitrust lawyer at the U.S. Department of Justice who was on the team that blocked the proposed merger between AT&T and T-Mobile in 2011.

Leading the review of the AT&T-DirecTV merger is Jamilla Ferris, another former DoJ antitrust lawyer who is leaving private practice to join the FCC. According to a report at Reuters, Ferris was involved in the DoJ’s price-fixing lawsuit against Apple Inc. (NASDAQ: AAPL) and five book publishers.

Neither attorney was involved with the DoJ’s 2011 settlement that allowed Comcast to acquire NBCUniversal from General Electric Co. (NYSE: GE).

The FCC has hired the chair of the economics department at Northwestern University as the senior economist to oversee both proposed mergers and a management professor from Northwestern who specializes in communications.

The message from the FCC is that there’s a new sheriff in town and that the parties to the merger can expect some tough questions and some rough going if these deals are going to be approved.

Comcast’s shares are down 1.5% on Tuesday afternoon at $53.37 in a 52-week range of $41.06 to $55.28.

Time Warner Cable’s stock is down 1.3% at $146.13 in a 52-week range of $106.01 to $150.51.

AT&T’s shares are down about 1.1% at $35.63 in a 52-week range of $31.74 to $36.86.

DirecTV’s stock is down about 0.1% at $85.75 in a 52-week range of $57.05 to $89.46.

ALSO READ: Sprint, T-Mobile Merger Moves to Front Burner

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