Pros And Cons Of At & T And Time Warner Merger

1259 Words6 Pages
While consumers prefer smaller companies for better prices, The AT&T and Time Warner merger should proceed because it makes financial sense for AT&T to do so, many mergers like this have occurred before this with little to no government interference, and It is not violating any of the antitrust laws. Large corporations and the government have been at odds ever since the days of U.S. Steel and Standard Oil . Monopolies and Oligopolies are harmful to the economy and consumers because they allow for companies to corner markets, artificially inflate prices, and keep operating and manufacturing costs detrimentally low. To prevent this, several anti-trust laws have been created. With the increased interconnectivity of today, various industries are finding unique ways to work together. This leads to the rationality for why a merger like the one for AT&T and Time Warner can occur and succeed.
First, The AT&T and Time Warner merger should proceed because it makes sense financially on a variety of levels for these two corporations. From a financial standpoint, there are three ways in which a company typically use extra revenue earned. For one, they could give bonuses and dividends which they already did, and has some cash left over for other things. They could also invest the money back into the business. This alternative however does not give as large of an expected profit margin as AT&T is probably looking for. Lastly, they could invest in mergers and acquisitions. This last

More about Pros And Cons Of At & T And Time Warner Merger

Open Document