AT&T's DirecTV Spinoff Gets Conditionless FCC OK
The FCC approval Friday of AT&T's spinoff of its North American video distribution business came with no conditions. See also our news bulletin here. The International and Wireless bureaus order approving transfer of some satellite, earth station and private land…
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mobile radio licenses said that since TPG Capital, which is buying a 30% stake in the spinoff, has no significant video programming or distribution assets, New DirecTV poses "no adverse effect on market concentration or likely competitive or public interest harms." Staff said no one had challenged AT&T and TPG assertions that the $7.8 billion deal announced in February (see 2102240046) would make New DirecTV more competitive through dedicated management, an ability to focus solely on the video business and the addition of capital and resources. Network affiliates had sought a condition requiring provide local-into-local service into all designated market areas (see 2105040055). The bureaus' order said nothing in the record points to New DirecTV having any less incentive to carry local broadcast channels and the affiliates didn't put forward evidence or a good theory showing New DirecTV would have different competitive pressures in those markets post transaction. Indie programmer RMG had urged that New DirecTV be required to allocate at least 1% of its channel lineup for rural-focused programming and be barred from removing rural content from its post-spinoff programming lineup. The order said the spinoff doesn't raise vertical integration concerns that New DirecTV would discriminate against unaffiliated programmers or change the incentives behind DirecTV program carriage decisions. AT&T said it "appreciate[s] the FCC’s prompt review and approval."