Business

The acquisition of Time Warner by AT&T is about to be allowed in Brazil

Brazil has a law that limit the interaction of content producers and cable operators, but it could be about to change

It could seem like a simple company acquisition at a first look, but buying Time Warner hasn’t been an easy task for AT&T in Brazil thanks to the current regulation that limits the acquisition of content producer by cable TV owners. But it could be just about to change, for good.

After several discussions with the Brazilian government, the media outlet Valor revealed that the acquisition could be the first of having the support of the federal agency responsible for allowing the process, even not being a unanimous decision.

Besides the liberal economic profile of the current economic team in Brazil, the streamings could be one of the main reasons why the majority of the government is taking the AT&T side. The company that owns Sky Brasil, the TV cable brand that represents 19% of this market in Brazil and is the second biggest player on its segment in the market, is arguing that if the Brazilian government doesn’t step down on the current regulation, as soon as the WarnerMedia’s acquisition be done, Sky Brasil will have to be sold. Regarding the Netflix popularity in the country, the chance of not having a buyer interested in Sky is high, which could drive to market domination by the group Claro/Net, which is already leading the TV cable in Brazil and represents 49% of it.

Still, the process isn’t confirmed yet and the directors that disagree with the decision could request more time to find a way to avoid a possible defeat in the federal agency.