JUST GET THIS THING RESOLVED.
EDWARD OR LAWRENCE, THANK YOU
VERY MUCH.
OF COURSE, HE'S GOING TO BE BUSY
IN ABOUT TWO AND A HALF HOURS.
WHAT DOES ALL THIS MEAN, AND
WHAT ARE ALL THE LEGAL INS AND
OUTS, JUDGE ANDREW NAPOLITANO.
JUDGE, GOOD TO SEE YOU.
WHAT DO YOU THINK?
IS.
>> SO, EDWARD SET THIS UP FOR
NICELY FOR US.
WE EXPECT A RULING AROUND 4:00
EASTERN TODAY FROM A JUDGE WHO I
WOULD DESCRIBE AS, I HOPE YOU'LL
FORGIVE THIS WORD,
LIBERTARIAN-ISH.
A JUDGE WHO IS NOT AFRAID TO
STOP THE GOVERNMENT, A JUDGE WHO
HAS A BELIEF IN THE FREE MARKET,
A JUDGE WHO HAS A TRACK RECORD
OF INVALIDATING GOVERNMENT
BEHAVIOR WHICH HE BELIEVES
VIOLATES FUNDAMENTAL RIGHTS.
NOW U HAVING SAID THAT, YOU HAD
A COLOSSAL BATTLE FOR SEVEN
WEEKS.
AND THIS IS WHAT LAWYERS CALL A
SWEARING CONTEST.
YOU HAD EXPERTS ON THE
GOVERNMENT SIDE SWEARING THIS IS
GOING TO DESTROY COMPETITION.
YOU HAD EXPERTS ON AT&T'S SIDE
SWEARING THIS IS GOING TO
ENHANCE COMPETITION.
BUT THE COURTS ARE RELUCTANT TO
INTERFERE WITH A VERTICAL
MERGER.
AT&T OWNS THE PIPES AND THE
WIRES, TIME WARNER OWNS THE
CONTENT.
THEY DON'T COMPETE WITH EACH
OTHER -- THEY WILL, IF YOU
BELIEVE AT&T'S ARGUMENT --
ENHANCE EACH OTHER.
SO WE HAVE EVERY REASON TO
EXPECT THIS WILL BE APPROVED
EITHER AS OFFERED OR WITH MINOR
TINKERING.
NOW, PEOPLE ARE GOING TO BE
LAUGHING AT ME IN TWO HOURS,
BECAUSE JUDGE LEON COULD COME
OUT WITH A JUDGMENT THAT SIDES
WITH THE GOVERNMENT, BUT IT
WOULD BE INCONSISTENT WITH THE
UNMISTAKEABLE SIGNALS HE SENT
DURING THE FIRE.
NEIL: HE WENT AFTER THE
GOVERNMENT LAWYERS A LOT ON
THEIR ARGUMENTS, RIGHT?
>> YES.
NEIL: HOW MUCH DOES OUTSIDE
NOISE AND DEVELOPMENTS AFFECT
THIS?
I WAS MENTIONING ALL THE MEDIA
STOCKS, DISNEY AND COMCAST, THAT
HAVE BEEN CAUGHT UP IN THIS AND
THAT DEALS ARE PEGGED TO IF THIS
IS APPROVED.
IN OTHER WORDS, IF YOU KNOW THIS
IS A POSSIBILITY AND THAT ALL
THOSE STOCKS ARE REACTING OR
WILL REACT TO WHAT YOU DECIDE,
WHAT DO YOU THINK?
>> I THOUGHT THAT YOUR SUMMARY
OF WHAT MIGHT HAPPEN AT THE END
OF THE LAST SEGMENT BEFORE I
WALKED ONTO THE STUDIO WAS TRULY
HAPPEN.
QUESTION: CAN THE JUDGE TAKE
THAT INTO ACCOUNT?
CAN HE TAKE INTO ACCOUNT THAT
THAT MANY MORE OF THESE WILL
COME, ACQUISITIONS AND MERGERS?
AND A LOT MORE WORK FOR THE DOJ
AND THE JUDICIARY.
ANSWER: NO.
NO.
HE CAN ONLY RESOLVE THIS CASE ON
THE BASIS OF THE EVIDENCE THAT
CAME BEFORE HIM IN THE
COURTROOM.
AND WHAT MIGHT FOLLOW
ECONOMICALLY OR LOGICALLY IS NOT
EVIDENCE IN THIS CASE.
NEIL: BECAUSE SOME LOOK AT THE
COMCAST/NBC UNIVERSAL DEAL AS
THE ONE THAT FED THIS DEAL AND
THEN OTHER DEALS TO COME, BUT
YOU CAN'T EVEN ENTERTAIN THAT?
>> NO, YOU CAN'T.
BUT I WILL TELL YOU WHAT IS
HAPPENING WITHIN A QUARTER MILE
OF WHERE WE ARE SEATED NOW AND
SOME VERY LARGE AND SUCCESSFUL
LAW FIRMS HAVE THEIR
HEADQUARTERS.
BEEFING UP THEIR MERGERS AND
ACQUISITIONS DEPARTMENTS BECAUSE
THEY EXPECT THE SAME RULING WE
ALL DO, AND THEY EXPECT THEIR
CLIENTS TO BE BUYING EACH OTHER
OUT.
ALMOST LIKE THE FRENZY WE SAW IN
THE REAGAN ERA.
NEIL: BUT DON'T JUDGES OR
LAWYERS IN GENERAL LOOK AT THE
DYNAMICS IN JUST THE COURSE OF
THE 20 MONTHS THIS WAS PROPOSED
AND WHERE WE ARE NOW, LOOK AT
WHAT'S HAPPENED TO TO TO
NETFLIX, LOOK AT THE EMERGENCE
OF AMAZON PRIME AND HULU AND ALL
THESE OTHER SERVICES THAT HAVE
BECOME CASH COWS UNTO THEMSELVES
E CLINTING THE VALUE OF AT&T?
>> YES, THEY WILL.
NEIL: SO IF THE ARGUMENT IS THIS
IS ANTI-COMPETITIVE AND ALL
THESE TECHNOLOGIES HAVE EMERGED
IN THE INTERIM, YOUR ARGUMENT
POTENTIALLY AGAINST IT KIND OF
LOSES ITS --
>> LOOK, SOMETIMES A MOUSE CAN
SWALLOW AN ELEPHANT.
ABC WAS MANY, MANY TIMES THE
SIZE OF CAP CITY --
NEIL: YOU'RE RIGHT.
>> WE DON'T KNOW WHO'S GOING TO
BUY OUT WHOM --
NEIL: WASN'T THAT RANDALL
STEPHENSON'S ARGUMENT AT AT&T?
LOOK AROUND, JUDGE.
>> YES.
IT'S FASCINATING TO ME.
IT'S THE INTERSECTION OF LAW,
ECONOMICS AND THEN A LITTLE BIT
OF POLITICS.
NEIL: YEAH.
AND A LITTLE BIT OF DRAMA.
>> AND THEY NEED TO GET -- IT
KEEPS US BUSY.
NEIL: WHEN HE'S NOT AT A
RESTAURANT.
>> HE KNOWS GOOD RESTAURANTS.
NEIL: HE DOES REALLY.
HE POOH-POOHED MY OLIVE GARDEN
IDEA.
[LAUGHTER]
>> I'M WITH HIM ON THAT.