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While many people are arguing that the proposed $85 billion AT&T and Time Warner dealwould be bad for consumer choice, billionaire Mark Cuban has a contrarian viewpoint. The merger would lead to �more competition� he tells TechCrunch.
Cuban, who made his money through a different media acquisition, thinks the combination would help challenge the tech giants like Facebook, Google and Amazon who are �dominating digital content.� Right now, �AT&T and Time Warner lag way behind.�
He believes that Time Warner, which owns properties like HBO and CNN, would benefit from additional resources for developing its web properties. �Traditional content needs help transitioning to compete with app-driven content,� he argued.
[UPDATE: It has been brought to my attention that Cuban previously appeared in ads for AT&T. I�ve reached out to clarify his current relationship with the company].
Cuban also hopes the mega merger will be approved by regulators because he feels it �isn�t as impactful� as Facebook�s purchases of Instagram or WhatsApp. (He invests in a competing messaging service called Dust).
But others disagree with Cuban�s assessment. An array of politicians, from Bernie Sanders to Donald Trump, have questioned the legitimacy of the deal.
The Clinton campaign voiced skepticism, but took more of a wait-and-see approach. The antitrust review would not be finalized until 2017.And there have been attempted media acquisitions that did not work out. The Comcast-Time Warner Cable deal was called off and AT&T�s attempted T-Mobile acquisition was scrapped.
But this wouldn�t be the first time that a television provider successfully acquired television content. Comcast bought NBC Universal in a similar deal in 2011. And AT&T recently acquired DirecTV, emboldening its service provider business.
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