Essay|Business Finance – Economics
Resources:
1. Justice Department Sues to Block AT&T Merger, Nov. 20, 2017, Kang & Merced, NY Times (https://www.nytimes.com/2017/11/20/business/dealbook/att-time-warner-merger.html)
2. M.J. Santorelli, Why the AT&T Merger Makes Sense, (op-ed), Nov. 16, 2017, NY Times (link to click on, right-hand side of first article above)
3. Tim Wu, Why Blocking the AT&T Time Warner Merger Might be Right, NY Time, NY Times, (op-ed), Nov. 9, 2017 (link to click-on in 1st article)
Questions
1. What type of merger would this be? (Conglomerate, Vertical or Horizontal). Why? Explain your choice
2. Which types of mergers are anti-competitive and how do each type reduce competition?
3. Why is the DOJ opposing this merger (economic reasoning…that is)?
4. Santoreilli(2nd article/reference) contends that the merger makes sense. What are his economic reasons for contending that the merger would not hurt competition, i.e., make sense?
5. Wu(3rd article) contends that blocking the merger might make sense. Under what economic circumstances/conditions does blocking the merger make sense (or how would allowing the merger to go forward decrease competition, i.e. be anti-competitive)
