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Earlier report claimed U.S. telco would have to offload assets in return for Time Warner takeover approval
AT&T CEO Randall Stephenson moved quickly this week to dispel rumours his company may have to sell CNN in return for antitrust approval for its acquisition of Time Warner.
"I have never been told that the price of getting the deal done was selling CNN. Period. Likewise I have never offered to sell CNN," he said at a New York Times DealBook conference on Thursday.
His comments were made in response to reports that the Department of Justice (DoJ), which is currently reviewing AT&T’s proposed Time Warner purchase, has requested that the U.S. telco offload either its pay-TV arm DirecTV, or Time Warner’s Turner Broadcasting unit, which owns CNN.
"There was absolutely no intention that we would ever sell CNN," he reiterated, explaining that acquiring Turner Broadcasting as part of the Time Warner deal will bring together AT&T’s huge customer base and Turner’s advertising inventory, "which is a really powerful thing," he said.
"Selling CNN makes no sense in that context if that’s the business you’re trying to build," Stephenson said.
AT&T agreed to pay US$85.4 billion for Time Warner just over a year ago and has since been working with regulators in the U.S. and overseas to secure the necessary approvals.
In October, Brazil gave it a conditional OK, leaving the U.S. as the only remaining market that has yet to green light the deal.
