AT&T agreed to buy out Time Warner Inc., not Time Warner Cable, for $85.4 billion on Saturday, October 22nd. Many are criticizing the merger for various reasons. Government regulators are convinced that the power will be divided between only a few in the highest rankings working for AT&T. Donald Trump says that if elected, he will eliminate the merger because of how much power will be going to a very few amount of people. Bernie Sanders has mentioned that the merger will lead to higher prices and fewer choices for consumers. One of the top broadband providers merging with a massive media and entertainment composite can be dangerous. Time Warner owns CNN, HBO, Warner Bros., and many other popular programs. It could classify this merger as a monopoly because of how much it will control.

 However, with many cons to this merger, there are also pros that should be considered. “I think that the merger will be super big and innovative, but I also think it could cause an increase in prices,“ junior Evan Sousa said. AT&T promises new kinds of content; they will forecast a new phase of video innovation, for example. The claim is that this deal will launch it. This union could also spark into a potential competitor for cable. AT&T argues that one day with 5G, the carrier’s nationwide stretch would propose an alternative to the already existing in cable and pay TV.

 The merger is vertical, which means AT&T and Time Warner were functioning at completely different sides of the supply chain before they merged. Benefits for vertical merger include being able to dominate the market allowing them to price assets higher than usual and being able to combine their skills for better synergy.

 Overall, the merger could potentially cause an uproar with making the cost increase. It could also be a very groundbreaking because of the size. Time Warner sees this as a way to connect with AT&T to become a stronger pact and to progress further.