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Saving CNN: 3 Reasons To Approve The AT&T-Time Warner Merger

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Jim Acosta of CNN waits to do a live shot following the daily briefing at the White House in Washington, Wednesday, Aug. 2, 2017.
Susan Walsh/AP

Thanks to the U.S. Department of Justice, AT&T’s monopolistic dreams may not come true after all. According to media reports, the government may block AT&T’s proposed $85 billion acquisition of Time Warner. Even if the deal is approved, AT&T may be required to sell off CNN, one of Time Warner’s crown jewels.

Under normal circumstances, such action would be welcome news for those who have long opposed media concentration and its accompanying ills: fewer choices, higher prices, and more power for corporate executives to control what we watch, listen to, and read. But nothing is normal in the Age of Trump. And in this case, it appears that opposition to the deal may be driven less by antitrust law and more by the president’s ongoing fury at CNN.

Who, after all, can forget Trump’s outburst after CNN revealed the existence (though not the contents) of the infamous dossier of raw Russian intelligence, which claimed the president-elect had engaged in financial shenanigans and embarrassing personal behavior? “Your organization is terrible,” Trump told CNN’s Jim Acosta at a news conference last January, adding: “You are fake news.” The relationship has not improved since then.

Thus anti-monopolists find themselves in the awkward position of supporting Trump’s Justice Department on the AT&T-Time Warner merger while feeling obliged to point out that federal regulators may well be doing the right thing for all the wrong reasons. Timothy Karr of Free Press, a prominent media-reform organization that opposes the merger, nevertheless writes that “Trump would be dead wrong, however, to pull the levers of government to force more favorable coverage from CNN.” Los Angeles Times columnist Michael Hiltzik, who also argues that the merger should be rejected, worries that Trump’s loose lips and tawdry tweets may end up working to AT&T’s advantage: “Trump’s rhetoric about the deal, which dates back to his presidential campaign, has muddled the issues — and may even have increased the chances that the deal will go through with all its negative aspects intact.”

I’ve been writing about the threats posed by media concentration since the 1990s. Given the circumstances, though, I think the AT&T-Time Warner deal ought to be approved — and not because (or not just because) it would infuriate Trump. Much as I agree with Karr and Hiltzik in the abstract, I can think of three very good reasons why we might be better off if AT&T winds up as CNN’s corporate overlord.

• Rupert Murdoch — yes, that Rupert Murdoch, owner of the Fox News Channel and friend of Trump — has reportedly indicated an eagerness to add CNN to his empire should it become available. According to Jessica Toonkel of Reuters, Murdoch called AT&T chief executive Randall Stephenson twice during the past six months to discuss a possible deal should AT&T be forced to sell off CNN.

• A deal that would allow Sinclair Broadcast Group to acquire Tribune Media’s television stations appears to be on track, giving the company control of more than 200 stations around the country. And Sinclair is notorious for using its power in local markets to advance a right-wing, pro-Trump agenda. Over the weekend, for instance, David Zurawik of The Baltimore Sun detailed how a Sinclair-owned station in Alabama ran a deceptive report in its local newscast to try to discredit The Washington Post’s coverage of women who say they were sexually assaulted by Republican Senate candidate Roy Moore when they were teenagers and he was in his 30s.

• Bigger is not better — far from it. But given the enormous power over content and distribution amassed by the platform giants Facebook and Google, it may be that traditional concerns about media concentration are obsolete. Perhaps the best way to fight the new media giants is by empowering the old. As Josh Marshall of Talking Points Memo notes, AT&T’s Stephenson made exactly that point recently. “Essentially,” Marshall wrote, “he argued that only by combining a company with a dominant position in distribution (AT&T) with a content company (Time Warner) could anyone hope to compete with the platform monopolies Google and Facebook in the advertising business.”

Earlier this week, Bloomberg’s David McLaughlin, Scott Moritz, and Sara Forden reported that AT&T will ask a judge to provide the company with communications between the White House and the Justice Department if the government sues to stop the merger. That could make for some very interesting reading.

Murdoch lurking in the wings. A super-empowered Sinclair wreaking havoc in television markets around the country. Traditional media being hamstrung by old laws while Facebook and Google continue to reign unchecked. Those would be reasons enough to approve the AT&T-Time Warner merger. But the specter that President Trump is attempting to orchestrate this as a way to punish a journalistic enemy looms over all of this. 

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