Concept of Vertical Integration
In June 2018, a federal judge approved the merger of AT&T and Time Warner, rebuffing the government’s effort to block the $85.4 billion deal. We learned about the concept of vertical integration in Chapter 3. This merger is an example of vertical integration. AT&T operates primarily in the area of distribution while Time Warner owns various companies in the area of production (e.g., CNN, HBO, TBS) In this independent exercise you are required to answer the following question: Was the federal judge correct to approve the merger? Why or why not? Your response should include the following: What was AT&T’s rationale for desiring the merger? What kind of support did they offer for their argument? What kinds of companies and organizations opposed the merger? What do you perceive to be the opponents’ key arguments? What kind of support did the opponents provide to support their arguments? What side do you come down on and why? The paper should be based on a minimum of 4 sources (excluding Wikipedia). The paper should be 2-3 pages in length.
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