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Trefis Says AT&T's DirecTV Plan Will Get Regulatory Clearance

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AT&T Inc. (NYSE: T)'s plan to acquire DirecTV (NASDAQ: DTV) for $49 billion is likely to win regulatory approval over the objections of Netflix, Inc. (NASDAQ: NFLX).

"We believe that the deal will eventually go through," an anonymous contributor wrote for the financial website Trefis May 12.

The Justice Department and Federal Communications Commission have nearly completed a review of the deal and are unlikely to raise objections, according to a report, also May 12, in The Wall Street Journal, citing people familiar with the matter.

Separately, Netflix said it recently met with the agency to discuss the merger's effects on competition.

A Netflix spokeswoman told Reuters that Netflix doesn't oppose the merger in principle, but has "been highlighting concerns about AT&T's broadband practices and the need for appropriate remedies since last September."

Comcast Corporation (NASDAQ: CMCSA)'s $45 billion plan to acquire Time Warner Cable Inc. (NYSE: TWC) got quashed by regulators last month over antitrust issues. But Trefis said the AT&T DirecTV "deal has not been met with similar hostility from the regulatory bodies."

DirecTV's management recently expressed confidence that the deal will be closed by mid-year, Trefis noted.

The FCC paused its deliberations concerning the AT&T's proposal in March to review confidentiality agreements.

Posted-In: TrefisNews

 

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