AT&T 'optimistic' about DirecTV merger in wake of halt on FCC review

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AT&T CFO John Stephens said he wasn't worried about the FCC's decision to stop the 180-day time clock on the review of its merger with DirecTV.

Danielle Abril

Staff Writer- Dallas Business Journal

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The Federal Communications Commission has stopped the clock on its review of the proposed $48.5 billion merger of AT&T Inc. and DirecTV after receiving objections from companies concerned about the release of confidential information.

The FCC decision also applies to the Comcast Corp. and Time Warner Cable Inc. merger.

But during AT&T's third quarter earnings call on Wednesday, John Stephens, senior executive vice president and chief financial officer, said he is "optimistic" the merger will move forward.

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"We're confident in the FCC's rigorous procedures … and we're ready to provide them the information they requested of us," he said. "Today's decision doesn't change our view that we'll be ale to get the deal approved and closed in the first half of 2015."

The complaint originated from a host of content companies, including CBS Corp., Scripps Networks Interactive Inc., Walt Disney Co., Time Warner Inc., Twenty First Century Fox Inc., Univision Communications Inc. and Viacom Inc.

The companies don't want third parties to be able to access their confidential carriage agreements as it could affect their competitive advantages, according to the FCC filing. The FCC stopped the 180-day time clock on day 85, according to Reuters.

The companies are asking for an extension of time to file replies to the merger review. The FCC approved the request and will take the time to rule on the objections. Then the commission will release a public notice that will include new pleading cycles to provide time for commenters to review the material and prepare comments, the document states.

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Danielle covers technology, retail, restaurants and hospitality for the Dallas Business Journal. Subscribe to our new TechFlash email newsletter.