Examining the Effects of Megamergers in the Telecommunications Industry Hearin

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Examining the Effects of Megamergers in the Telecommunications Industry Hearin
Monopolies United States Congress Senate Committee On the
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Senator Metzenbaum. You at least won the first inning.
Mr. Diller. We weren't knocked out.
Senator Metzenbaum. You got on first base. Now, the question is to get around to home.
Mr. Diller. We weren't sent home.
Senator Metzenbaum. The QVC Network, which you chair, is en- gaged in a bidding war with Viacom for Paramount. In order to raise the nearly $10 billion that you needed to make a competitive bid for Paramount, you have had to strike a couple of different alli- ances. Initially, your bid
...for Paramount was backed by TCI and its spin-off company Liberty Media. As you know, that deal ran into antitrust problems.
In a consent decree with TCI and Liberty Media, the FTC charged that allowing TCI to acquire any more cable programming would have been anticompetitive, and I agree with them. However, I must admit that I was surprised TCI dropped out of the deal so quickly and agreed to sell off its holdings in QVC. QVC was in- volved in the negotiations leading up to the FTC consent decree.


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