After AT&T's win, here comes the expected Comcast-Fox bid - Newschannel 6 Now | Wichita Falls, TX

After AT&T's win, here comes the expected Comcast-Fox bid

(AP Photo/Matt Rourke, File). This March 29, 2017, file photo shows a sign outside the Comcast Center in Philadelphia. (AP Photo/Matt Rourke, File). This March 29, 2017, file photo shows a sign outside the Comcast Center in Philadelphia.
(AP Photo/Bebeto Matthews, File). In this Tuesday, May 2, 2017, file photo, Verizon corporate signage is captured on a store in Manhattan's Midtown area, in New York. (AP Photo/Bebeto Matthews, File). In this Tuesday, May 2, 2017, file photo, Verizon corporate signage is captured on a store in Manhattan's Midtown area, in New York.
(AP Photo/Mary Altaffer, File). This May 10, 2017, file photo, shows the CBS logo at their broadcast center in New York. (AP Photo/Mary Altaffer, File). This May 10, 2017, file photo, shows the CBS logo at their broadcast center in New York.
(AP Photo/Richard Drew, File). In this Aug. 8, 2017, file photo, The Walt Disney Co. logo appears on a screen above the floor of the New York Stock Exchange. (AP Photo/Richard Drew, File). In this Aug. 8, 2017, file photo, The Walt Disney Co. logo appears on a screen above the floor of the New York Stock Exchange.
(AP Photo/Richard Drew, File). This Aug. 1, 2017, file photo shows the 21st Century Fox sign outside of the News Corporation headquarters building in New York. (AP Photo/Richard Drew, File). This Aug. 1, 2017, file photo shows the 21st Century Fox sign outside of the News Corporation headquarters building in New York.
  • RELATED LINKSMore>>

  • AT&T antitrust win may herald new wave of media mergers

    AT&T antitrust win may herald new wave of media mergers

    Wednesday, June 13 2018 2:46 AM EDT2018-06-13 06:46:58 GMT
    Thursday, June 14 2018 7:51 AM EDT2018-06-14 11:51:18 GMT
    (AP Photo/Jose Luis Magana, File). FILE- In this March 22, 2018, file photo, AT&T CEO Randall Stephenson leaves the federal courthouse in Washington. The judge presiding over the government's legal effort to block AT&T's purchase of Time Warner...(AP Photo/Jose Luis Magana, File). FILE- In this March 22, 2018, file photo, AT&T CEO Randall Stephenson leaves the federal courthouse in Washington. The judge presiding over the government's legal effort to block AT&T's purchase of Time Warner...
    AT&T antitrust win may herald a new wave of media mergers.
    AT&T antitrust win may herald a new wave of media mergers.

By MAE ANDERSON
AP Technology Writer

NEW YORK (AP) - After AT&T-Time Warner comes the deluge.

Comcast bid $65 billion for Fox's entertainment business on Wednesday, a day after a federal judge has cleared AT&T's $85 billion takeover of Time Warner.

If Comcast succeeds in outbidding Disney for Fox, it would give a major cable distributor control even more channels on its lineup and those of its rivals. There are fears that it could lead to higher cable bills or hinder online alternatives.

But U.S. District Judge Richard Leon cleared the AT&T deal Tuesday despite similar concerns. The ruling signaled that federal regulators might have a hard time stopping companies from getting bigger by gobbling up rivals and the content they own.

Comcast isn't likely the only mega-media bid in the works. There will probably be a rush to consolidate. Cowen analyst Gregory Williams said the ruling could unleash "pent up" demand for mergers and acquisitions "across the Pay-TV landscape."

Even if a company doesn't need to get bigger right away, it might need to do so to prevent being overshadowed by a competitor.

Here's a look at some of the proposed combinations that could transform the media landscape and change how people get their entertainment.

FOX WITH DISNEY OR COMCAST

Disney has made a $52.4 billion all-stock offer for the bulk of Twenty-First Century Fox, including the studios behind the "Avatar" movies, "The Simpsons" and "Modern Family," along with National Geographic. Marvel would get back the characters previously licensed to Fox, reuniting X-Men with the Avengers.

Now Comcast has struck back with a larger $65 billion offer, all in cash. If Comcast succeeds in snapping up Fox, it could diminish the appeal of a planned Disney streaming service, which would heavily feature movies and shows from Marvel and the "Star Wars" franchise.

David Turetsky, a professor at the State University of New York at Albany, warns that the AT&T ruling is based on "specific facts and evidence" that may or may not apply in other cases. Still, there are many similarities between a Comcast-Fox combination and the AT&T-Time Warner deal that just passed judicial muster.

Comcast made its bid after the close of trading, but Wall Street was braced for a bidding war. Shares in Fox increased 7.5 percent to an all-time high of $43.41. Disney gained almost 2 percent, while Comcast edged down six cents to $32.32.

SPRINT AND T-MOBILE

In April, the two telecom companies announced a $26.5 billion combination. The deal would combine the nation's third- and fourth-largest wireless companies and bulk them up to a similar size to Verizon and AT&T, the industry giants.

The worry is that with just three major carriers, there would be less incentive to keep innovating on prices and service. T-Mobile and Sprint might even raise prices now that they don't have to try to poach customers off each other.

A 2014 attempt to combine fell apart amid resistance from the Obama administration. But the industry is different just four years later. Wireless carriers aren't just competing with each other, but also with Comcast and others as the wireless, broadband and video industries converge. AT&T is about to get larger with CNN, HBO and other channels from Time Warner. Beyond combining with each other, T-Mobile and Sprint might need its own content acquisition to compete.

CBS AND VIACOM

CBS has resisted pressure from its controlling shareholder, National Amusements, to merge with Viacom, which also is controlled by National Amusements. The two companies used to be one but separated in 2005.

A combination would reunite CBS's television business with Viacom's production studios, similar to the arrangements now in place at NBC owner Comcast and ABC owner Disney. (On the flip side, the Fox television network and studios would separate under a deal with either Comcast or Disney.)

With Viacom, the $6-a-month CBS All Access streaming service might have a larger library, as Viacom owns MTV, Nickelodeon, Comedy Central and other cable networks.

VERIZON

Verizon, which bought AOL and Yahoo in recent years, could be on the prowl for other entertainment properties. Verizon wants to challenge Google and Facebook in the huge and lucrative field of digital advertising - and having more content could help. There's speculation that CBS could be a potential target. With its main wireless rival AT&T becoming even more of a content powerhouse, Verizon might feel the need to grow.

Cowen's Williams suggests, however, that rather than buy an entertainment or media company, Verizon might buy a company that bolsters its network or infrastructure. Cable company Charter or satellite TV company Dish are "ideal candidates," he wrote in a research note.

SMALLER MOVIE STUDIOS

Rumors have long swirled that Lionsgate might be a potential takeover target by anyone from Amazon to Verizon or even a combined CBS-Viacom entity. Nothing has materialized yet for the owner of the "Twilight" and "Hunger Games" franchises. As a smaller studio, Lionsgate needs to get bigger to compete in the current landscape.

Similarly, Viacom-owned Paramount studio has been on the chopping block before. After years of troubles, it has recently rebounded with the horror film "A Quiet Place" and comedy "Book Club." That could make it a lucrative takeover target by a company seeking content creators.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • InternationalMore>>

  • Audi CEO detained in diesel emissions case

    Audi CEO detained in diesel emissions case

    Monday, June 18 2018 5:20 AM EDT2018-06-18 09:20:03 GMT
    Monday, June 18 2018 11:01 PM EDT2018-06-19 03:01:32 GMT
    (AP Photo/Michael Sohn, file). FILE - In this Thursday, May 3, 2018 file photo, Rupert Stadler, CEO of Audi AG, attends the shareholders' meeting of the Volkswagen stock company in Berlin, Germany. German prosecutors say they have expanded their probe ...(AP Photo/Michael Sohn, file). FILE - In this Thursday, May 3, 2018 file photo, Rupert Stadler, CEO of Audi AG, attends the shareholders' meeting of the Volkswagen stock company in Berlin, Germany. German prosecutors say they have expanded their probe ...
    German authorities have detained the chief executive of Volkswagen's Audi division, Rupert Stadler, as part of a probe into manipulation of emissions controls.
    German authorities have detained the chief executive of Volkswagen's Audi division, Rupert Stadler, as part of a probe into manipulation of emissions controls.
  • Turkey charges father of NBA's Kanter as terror group member

    Turkey charges father of NBA's Kanter as terror group member

    Monday, June 18 2018 3:30 PM EDT2018-06-18 19:30:33 GMT
    Monday, June 18 2018 10:54 PM EDT2018-06-19 02:54:29 GMT
    Turkey's official news agency says a court has accepted an indictment charging the father of NBA player Enes Kanter with "membership in a terror group.".
    Turkey's official news agency says a court has accepted an indictment charging the father of NBA player Enes Kanter with "membership in a terror group.".
  • Russian lawmaker wants to ban 'mockery' of soccer team

    Russian lawmaker wants to ban 'mockery' of soccer team

    Monday, June 18 2018 1:30 PM EDT2018-06-18 17:30:17 GMT
    Monday, June 18 2018 10:53 PM EDT2018-06-19 02:53:50 GMT
    (AP Photo/Dmitri Lovetsky, File). FILE - In this file photo from May 25, 2016, Vitaly Milonov, best known as the author of Russia's anti-gay propaganda law, speaks to The Associated Press in St. Petersburg, Russia. Milonov, now a Russian legislator, is...(AP Photo/Dmitri Lovetsky, File). FILE - In this file photo from May 25, 2016, Vitaly Milonov, best known as the author of Russia's anti-gay propaganda law, speaks to The Associated Press in St. Petersburg, Russia. Milonov, now a Russian legislator, is...
    A Russian legislator says he wants to ban and "mockery" of the national soccer team _ and fine violators 10,000 rubles ($160).
    A Russian legislator says he wants to ban and "mockery" of the national soccer team _ and fine violators 10,000 rubles ($160).
  • National politicsPolitics in the USMore>>

  • Trump to finalize small business health insurance option

    Trump to finalize small business health insurance option

    Monday, June 18 2018 6:20 PM EDT2018-06-18 22:20:33 GMT
    Monday, June 18 2018 11:02 PM EDT2018-06-19 03:02:06 GMT
    Trump administration to finalize health insurance option for small businesses and self-employed.
    Trump administration to finalize health insurance option for small businesses and self-employed.
  • EPA shifts oversight of coal waste to a state for 1st time

    EPA shifts oversight of coal waste to a state for 1st time

    Monday, June 18 2018 5:40 PM EDT2018-06-18 21:40:34 GMT
    Monday, June 18 2018 11:03 PM EDT2018-06-19 03:03:11 GMT
    The Environmental Protection Agency has approved the first state permit program for disposal of toxic ash from coal plants, in a switch from federal oversight that the coal industry had sought.
    The Environmental Protection Agency has approved the first state permit program for disposal of toxic ash from coal plants, in a switch from federal oversight that the coal industry had sought.
  • Upping ante, Trump threatens new tariffs on Chinese imports

    Upping ante, Trump threatens new tariffs on Chinese imports

    Monday, June 18 2018 1:30 PM EDT2018-06-18 17:30:14 GMT
    Monday, June 18 2018 11:01 PM EDT2018-06-19 03:01:29 GMT
    Trump recently ordered tariffs on $50 billion in Chinese goods in retaliation for intellectual properly theft. The tariffs were quickly matched by China on U.S. exports. (Source: Pixabay)Trump recently ordered tariffs on $50 billion in Chinese goods in retaliation for intellectual properly theft. The tariffs were quickly matched by China on U.S. exports. (Source: Pixabay)

    U.S. Secretary of State Mike Pompeo says China is engaging in "predatory economics 101" and an unprecedented level of larceny" of intellectual property.

    U.S. Secretary of State Mike Pompeo says China is engaging in "predatory economics 101" and an unprecedented level of larceny" of intellectual property.

Powered by Frankly