ABC News Live: AT&T's Time Warner Takeover

Federal judge approves $85 million mega-merger between AT&T and Time Warner
4:56 | 06/13/18

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Transcript for ABC News Live: AT&T's Time Warner Takeover
In this massive 85 billion dollar merger with Time Warner. Sometimes I think for people out there wondering you know what this means for medium what does this mean for consumers and mark my bills in the mount hot and I can have access to you. We'll get all of that just a moment first though want to bring in our chief business correspondent Rebecca Jarvis Rebecca always a pleasure to chat with you yours put things in simple terms for us. First walk us through this judge's ruling and what he's essentially saying here. Absolutely went into CO2 gas sit here point. This is going to mean a lot of big things for consumers but essentially what the judge has done is he has cleared the way for this 85 billion dollar deal where AT&T takes over Time Warner. Meaning AT&T is not only a wireless and streaming company but now it will also own assets like HBL and T and he. And CNN and Warner Bros. so it becomes this Magid giant company as a result of this judge saying that the deal is cleared to move on. And we're we got how we got to this point is because AT&T back when they initially 1618. Months ago. Made the choice to try to buy Time Warner. Not only did then candidate Donald Trump object to it but so did Democrats in the senate Elizabeth Warren Bernie Sanders all on the grounds. That it would be anti competitive that it would harm consumers the Department of Justice took the same stance eventually. They did not agreed to the deal they did not approve it AT&T turned around and sued and AT&T has won that lawsuit again. When it clearing the way to this 85 billion dollar deal happening which means that about a week from now AT&T is going to own HBO. And CNN and Warner Bros. And Rebecca again to that big question people out there are asking what does this mean for me what does this mean for my bills what does this mean in terms of the con tent I can have access to. So the future is going a look more and more like this deal. And what I mean by that is if you think about it when you think about Netflix and Amazon in the way that we now. By common tent it's so much ala carte so what happens here is when AT&T owns all of these companies. All of a sudden they can offer special deals to their customers for example an AT&T customer could potentially in the future stream. HBL or T and T on their phone and not have to pay for that Dana. While AT&T could charge someone with out me AT&T plan to stream the very same service's so the whole future when you think about. What what things used to be like when we were kids went remember you would get the basic cable plan and if you're lucky maybe your parents got at upgraded cable plans he could watch Disney and Nickelodeon. And maybe if your parents were really special they got the HBO in the showtime plans as well and they piled at all on. Will now the world that we're transitioning into. Is that if you want to watch all of those various things you're gonna have to buy them from all these different places AT&T is one of those places but sour Netflix. So or Amazon. There are a lot of companies now that are moving in this direction and for consumers. What Beck can't mean it is two things it can mean you pay last because you say you know what. I don't really care about back contest I'm not gonna pay for. Or it can mean you pay more because you care about the whole swath of contact you wanted all you're gonna have to buy it all piecemeal. And Rebecca what's been interesting to watch all of this it seems like it's been just case by case there have been other mergers were a judge says no you can't do that and then this huge one the judge says yes you can. Will this case inspire other companies to move in this direction these these future mega mergers were yeah tens of billions of dollars. It's going to be a land grab wit it's absolutely as a sign Q all of corporate America right now that if you wanna get a deal done. While the Department of Justice may stand in the way. The courts will ultimately. Side with companies that are trying to do deals like this now traditionally speaking the Department of Justice only blocks transactions when they happen in the same industry so. If your a phone company and you want to buy another phone company that's going to be a lot harder to do. But if you're a phone company and you want to buy it he meat company. Historically. That has not been something the Department of Justice has had issue with that was one of the reasons why in this case with AT&T buying Time Warner. A lot of people were really surprised when the Department of Justice stood up against it. But the future now which you can think about every single name you know. All of those companies now are looking for new assets to buy and they think were clear to do it. Absolutely of course that TVs and telephones are now becoming one in the same ups though Rebecca Jarvis our chief business correspondent thank you so much we appreciate your explanations and insight thank you thanks.

This transcript has been automatically generated and may not be 100% accurate.

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