DOJ Moves on AT&T/Comcast

The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act applicable to the pending merger between Comcast and AT&T Broadband has expired, the companies said Tuesday.

Thus, the antitrust review regulations no longer prohibit the companies from closing their proposed transaction, they said in a statement. The antitrust division at the Justice Department may request additional information concerning the transaction, and the companies said they will continue to cooperate. There are still other regulatory approvals needed before the deal is done, though Comcast and AT&T said they expect the transaction will close in the fourth quarter.

So, how about that other merger in the multichannel business? EchoStar said its pending merger with DirecTV and Hughes should win the blessing of regulators, since a combination of the No. 1 and No. 4 pay-TV providers will create a cable giant with more than 22 million video subscribers.

"This is all the more reason why our proposed EchoStar/Hughes merger should be approved as it is the best chance the American consumer has in terms of receiving effective competition to the cable giants," said EchoStar spokesman Marc Lumpkin. "Our merger will provide local TV channels nationwide and affordable high speed Internet, including for all of rural America."

EchoStar and DirecTV/Hughes announced their merger on Oct. 28, 2001. The companies have said they expect the merger review to take about a year, based on how long it took for the AOL/Time Warner review to be completed.

From SkyReport (Used with Permission)