Bernstein Says AT&T/DirecTV Conditions Mild, Positive for Cable Deal Prospects
The FCC's AT&T/DirecTV conditions weren't onerous and signal that Charter's planned takeover of Time Warner Cable and Bright House Networks won't be blocked just because of the combo's size, said Sanford C. Bernstein & Co. analysts Wednesday in a note…
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to investors on the agency's 241-page order (see 1507280043). "The Order imposes very few conditions on AT&T and none that we view as financially material," said Paul de Sa, a former FCC official, and other Bernstein analysts. "We expect the deal as approved to be at most slightly negative for other players in the sector (cable, regional fixed telco, content, Verizon)." They also called the order consistent with their view of the Obama administration's approach to transactions. "The Order disproves the theory that Charter/TWC/Bright House, or other cable/cable deals, will be challenged because regulators are against any merger that increases the size of integrated broadband/payTV providers," they said.