♪ this is bloomberg technology. coming up, the doj is hitting at&t hard. details on the lawsuit that could block at&t's $85 billion takeover of time warner. er speeds up its driverless push, striking a deal with volvo. details ahead. plus, more dealmaking in the chip industry. what the $6 billion acquisition means in its continuing consolidation. let's start with the lead. the u.s. justice department is suing to block at&t's $85.4 billion takeover of time warner. this is a major blow to the carrier to create a media and telecommunications empire. at&t's chief counsel said he is confident the court will reject the claims and the company is withng a press conference the ceo is expected to speak. we will bring you the headlines, but first ed hammond just listened in on the doj call and joins with the ceo is expected to speak. also with us is cory johnson and bob o'donnell with technalysis research. us. ed, you have been listening in on the call. what is the justice department's rationale? ed: they have come out swinging for this deal. they said it is legal, harmful to consumers. the rationale is yes, it is a vertical merger which traditionally you see those deals slide through. they think it concentrates too much power in the hands of one company and it gives at&t -- too much clout to determine which competitors get which content. prioritizing its own stuff through time warner. it is really interesting and almost unheard of kind of take for the department of justice to come out what looks like a very pure vertical merger. emily: cory, in the weeks leading up to the position at the justice department, it seemed like everything was moving forward and suddenly things have changed which begs the question is this politically motivated? does this have to do with the president's dislike of cnn? cory: there has been some reporting saying that this did come from the staff. that the suggestion was really about market concentration. the lawsuit will try to bring up whatever and including going into what the president has said both on twitter and perhaps in private to look at how that may have influenced the deal. but, this is a pretty tough suit. the suggested that the concentration of power is interesting to see from this current fcc. what is you.. if this is in fact considered a consolidation of power, what do we think about the big tech companies? there is a lot more power and influence in those companies. if i am one of them, i'm more nervous because the regulatory environment suggests, and the legal environment suggests they could be going after large companies. emily: ed, the you get the sense that could have a broader ripple effect or this is very specific to this particular deal? ed: it will have a broader ripple effect. there is no way this does not have, at least in the immediate affects onof exxo m&a. this is a case of what we constitute power to be. you have the traditional of power only in concentrated markets. this is a question of absolute power. if the doj goes through with it, you will see lots of people who would have done mergers similar to this in terms of integrating companies, they have to think twice. you will see people really pullback from some of the bigger, potentially contentious deals. and then you throw in the unpredictability of trump. is veryy at&t -- trump vocal that he does not like the deal and does not like cnn. cnn is one of the main assets that the department of justice apparently asked at&t to the vest from. emily: the ceo of at&t has already said spinning off cnn is not an option, but there is an opportunity to negotiate. could that be part of the negotiation? cory: it looks like the negotiation ended today or a few days ago and the suggestion is cnn might get spun off best they might have looked at that before today but now they are looking to go to court. just behavioral changes that at&t might have promised as we have seen in earlier mergers. it is important to understand how cnn works within all of the cable empires. time warner is able -- if a carrier wants to carry cnn, they will be told they can carry cnn if you take at&t and the other offerings. time warner is able to sell many cable networks by having the crown jewel of cnn. it is not just a stand-alone business. on all why they have cnn these other carriers and it is great source of revenue for time warner. as a result, you have time warner really recognizing the need to keep that as part of their business and at&t wanting to keep it. emily: we are getting headlines out of the justice department. an official saying the lawsuit has nothing to do with president trump, influenced by president trump or anyone else in the white house. cory: that does not mean it will not come up in the trial. ed: of course, they are going to say that. bob: it is absolutely the party line. wedo have to think about -- have to think about how people think about and consume media and content these days. all of that is changing, therefore the rules are changing. i think that is what we have to think about, the potential implications of what is going on. emily: an at&t-time warner merger would pose a level of competitive harm not seen in decades. ed, this is what a justice department official is saying. what is next? how does this process play out? ed: it is not sound like sentiment language. they will obviously go to court on this one. it seems very unlikely they will find some resolution before and. at&t genuinely believes they had a winnable case. they believe there was political interference. they actually set immediately when the justice department came out this afternoon, at&t put out a very aggressive statement saying the lawsuit is a radical departure from decades of antitrust precedent. i think this is the doj overreaching and they will obviously go to court. i think -- we touched upon this -- this will have a chilling effect on deals in the near term. emily: in 2011 when at&t dropped its proposed bid for t-mobile, we covered that. could we see something similar happening? cory: companies want to keep getting bigger, eliminate competition, consumers have less choice. we are always going to see deals like this, but what we have seen is the world is clear. whatever guidance they are from themight accept fcc, it seems like the companies are not getting a clear view of these things in advance. i'm sure at&t is furious what is going on with the department of justice and the bankers that told him this deal could go through. emily: what do you expect the consequences to be if the deal does not go through? ed: i like cory's point, blame the bankers. cory: the bankers don't think so. ed: i likeed: look across at whs happening to fox. a number of companies trying to buy access from fox. there is still a lot of potential acquirements. it's entirely possible you could see other suitors try to buy either or. if they go to court and this thing gets blocked, it's really does not bode well for people attempting these big contentious mergers. emily: all right, we will be following this throughout the show. we will be listening to the live webcast at the start of the bottom of the hour in new york where at&t's ceo randall stephenson is expected to speak. cory johnson, bob o'donnell is sticking with me from technalysis research. coming up, consolidation in the chip industry continues. marvel's $6 billion plan. the latest on what qualcomm and breas investors want to see from broadcom. you can check us out on bloomberg tech tv. this is bloomberg. ♪ emily: a big takeover in the chipmaking business. marvell technology has agreed to buy cavium for $6 billion in cash and stock. marvell specializes in chips that control hard disk drives, a market no longer growing. cavium makes network processors. qualcomm investors say they could be open to weigh broadcom deal, but for a higher price. broadcom'sjected acquisition offer last week. anand who focuses on the semi conductor industry joins me along with bob o'donnell. anand, what do you make of qualcomm's response? anand: it is logical to try to extract more dollars out of the deal but if you step back and look at the big picture, we think the combination makes sense. this places adjacent parts of the cell phone together and the ceo of broadcom might be able to settle disputes with apple which has been the primary thorn in qualcomm's side. that adds a tremendous amount of value to qualcomm and broadcom, if it were to be acquired. emily: what about the price on offer? anand: as so far as is it possible that the ceo offers five dollars more or $10 more to get the deal done, yes. perspective, he is actually pretty well leveraged to try to make this deal happen. at the end of the day, the $80 a share that people are angling for is also a psychological high price. and he has historically not cowed to those higher price demands usually. a little bit of a barter transaction as to whether the deal gets done at that price. emily: there has been a ton of consolidation in the chip industry. take a look at the chart in the bloomberg. it shows you just how chip sales have been rising at its fastest pace since 2010 globally, yet more consolidation, bob, than ever. fewer players. bob: the issue is it is very hard to compete if you are a smaller specialized player. you are seeking a conglomeration of different technologies being could together in these companies. think about what intel has done. pu's,have gone from c now competing on other things. the companies recognize they have to have a combination of different components because whether it is automotive, computer, mobile phone -- all of these areas require multiple types of technology. one thing i will throw out -- two things on the qualcomm-broadcom deal -- there is a concern from a monopolistic perspective. you have to figure out what they are going to do because there is too much control consolidated. the other thing is culturally, broadcom and qualcomm are different types of companies. there is a concern with a have an impact in terms of talent loss and things like that if this deal goes through because there has been discussion about that. anand: that is a great point. unlike other general consolidations, even large-scale -- this is not intel -- the difference is the ceo is in charge. emily: someone said to me he gets what he wants generally. anand: he has a very clear idea of what he wants and a clear idea of what he wants to keep. more importantly, what he wants to divest. we think it is roughly $7 billion business that can be funded pretty quickly. the other part of it is it's from left field, but somehow put a motor on qpl, the licensing portion of the business, could that be sold off? that could clear a whole host of problems from a regulatory perspective. emily: how does the cavium-marvell deal fit in? bob: it seems pretty straightforward. i think there is a nice combination of technology. two relatively smaller players coming together. what is interesting about that -- there is this general idea of edge computing. the idea of cloud computing coming down to the edge. cavium is now talking about arm servers. this combination gives them the capability to create very interesting products, components for products. i think that could be a big deal. anand: interestingly enough, the main competitor to both marvell and cavium is broadcom. emily: broadcom will be everybody's competitor given how many companies -- what are the consequences of that? anand: you have to be, in semis, ome.ig oral g go h you cannot afford to be a small player and think you can go anywhere. you have to have manufacturing capacity, product and distribution. you cannot afford to be a small player and think you can go you cannot do that if you are a small company. bob: the only thing i thought of when i was thinking about this is what samsung said we want qualcomm? because samsung does raw components -- they do screens, memory and they could do radios. i'm not saying anything like that will everyou cannot do thaa happen, but when you think about ways this world could go, that would not be the strangest deal ever done. emily: interesting thought. bob, you are sticking with me. anand, great to have you here in san francisco today. still ahead, alibaba goes shopping, picking up a slice of china's top hyper market chain. we will look at a deal worth nearly $3 billion. interactive tv function, you can find it on tv on bloomberg. if you missed the interview, you can go back to it, send our producers a message and play along with the charts you see on the air. check it on tv . this is bloomberg. ♪ emily: big news for tencent. they have become the first chinese company to be valued at more than $500 million. three months after a top $400 million for the first time ever. tencent joins apple, microsoft, amazon and facebook for the only companies valued at more than $500 billion. another giant on the news, alibaba making another bet on brick-and-mortar retail. they have agreed to take a $2.9 billion stake on the country's biggest operator of walmart style hypermarkets, 36% of sun art retail. joining us now is selina wang and bob o'donnell. what is the motivation and how does it fit into alibaba's overall bet on offline? selina: this gives alibaba access to 400 of these hypermarkets along china. this is just a string of deals they have done in off-line. they are in grocery and department stores. them access consumers in lower, smaller cities that were not familiar with regular shopping on alibaba before. the big long-term them access cs in lower strategy is they want to use their colossal amount of data, e-commerce, combined it with the virtual world with the offline world to make shopping better. this gives them a lead with what walmart has been doing with jd in china. alibaba also has a significant stake in this hypermarket world. emily: taking a look at the bloomberg, another chart. you can see how revenue growth at sun art is slowing down. the hope is this would reverse that trend. bob, any coincidence, you think about them announcing it during the big week for u.s. retailers and amazon especially? bob: obviously not, but we have to be very careful about comparing what happens in china and in the u.s. we talked about this before. you are certain things that will fly in china that will not fly in the u.s. being rethought, rebuilt all over the world and people are experimenting. i think it is fair to say this is probably more experiment that anything else because sales have been declining. point about getting to those lower tier cities is important because we tend to focus on big cities, but the real mass growth opportunity is going to be in those lower tier cities. important because we tend to focus on bigif they havn those places, that is a great way to step them up into this whole new vision of retail. about talk to us, selina, the experiences they are try to storesin the physical that they do have as an enticement to get shoppers to get out and go shopping. selina: part of it is an experiment. these supermarkets where it is a cashless experience. they combined it with their ali pay mobile app. it is a very expensive experiment, they have invested billions and billions. they see it as more of an experiment, but not a direct comparison with what amazon is try to do with whole foods. emily: exactly. it is not unheard of this happens in the u.s. selina: at the same time, the off-line experience in china is woefully worse than it is in the u.s. in china, these off-line stores often have terrible inventory, management. there is a lot further that alibaba can take these stores than what amazon can potentially do with whole foods. emily: where do you see this going? bob: i think we are going to see companies figure out a mechanism to share the experience even more. i'm not sure tha how that is going to go but my gut feeling is people will pull it back a little bit of buying everything online. there is recognition about something about retail that makes sense, especially for certain kinds of items. it is figuring out that balance. what is that right balance between off-line andi'm not su ? what are the ways i can get people to think about different kinds of product categories? one big thing is what is the range of products? in china, everything is in the same store. we don't have quite -- we have some of that in the u.s. but not as much. i think the release of experimentation around types of merchandise. emily: we will talk about that more later in the show. a smaller percentage of people are expected to turn out online for black friday. whselina wang, thank you so muc. bob is sticking with me. coming up, uber goes into high gear with autonomous driving. we will have more details on their order for more cars from volvo. this is bloomberg. ♪ >> you are watching bloomberg technology. here's a check of your first word news. u.s. secretary of state rex tillerson says president trump's decision to return north korea to the list of countries designated as state sponsors of terrorism is part of the effort to discourage countries from doing business with the rogue regime. speaking at today's white house briefing, he indicated the u.s. will continue to work with china in dealing with pyongyang. >> we still hope for diplomacy. the timing of this is just one of those concluding the process. there is a very specific designation process that we have to do to be able to meet the criteria to make such a designation. we want to ensure we have fully met all of those requirements. iran,th korea would join sudan and syria on the list of state sponsors of terrorism. buzzfeed is reporting at a private dinner with oracle ceo, national security adviser h.r. mcmaster mocked president trump's intelligence. sources tell buzzfeed benefit july dinner, mcmaster dismissed the president as an idiot and dope with the intelligence of a kindergartner. oracle and the trump administration denied the clai ms. violence happened in kenya following the supreme court decision to uphold the president's reelection. at leastalls for calm, two protesters were killed in confrontations with police. nearly 100 people have died in the political unrest since the president's victory was initially overturned in august. global news 24 hours a day, powered by journalists in more than 100 countries. this is bloomberg. just after 5:30 p.m. in washington, 6:30 a.m. in hong kong, we are joined by sophie with a look at the market. good morning. >> good morning. a risky start to the asian markets but now we are looking at recovering some of the losses with futures pointing higher in tokyo and australia. aussie stocks looking to recover some losses ahead of the minutes due on tuesday. may be looking to track u.s. stocks higher as congress gets a break from tax stocks for thanksgiving. the dollar rebounding. investors unfazed by janet yellen's resignation. things continue for the euro. new german elections. more up next with bloomberg technology. ♪ ♪ emily: this is the break technology. our top story -- the u.s. justice department is suing to block at&t's $85.4 billion takeover of time warner. this deal is a major blow to the carriers bid to create a media and telecom empire. it was only two weeks ago the at&t's ceo randall stephenson said the company was preparing for litigation since they announced that the deal. arey surprise there statements that there might be litigation, yes, i'm surprised. am i concerned? it might not surprise you since the day we have announced this, we have been prepared to litigate this deal. we have been working very diligently on a litigation strategy and plan. we are prepared. emily: the company is set to hold a press conference momentarily where randall stephenson will be providing an overview of developments. we will bring you all the headlinese. suvsis buying 24,000 volvo to ramp up its fleet of driverless cars. the xc-90's will arrive at dealers between 2019 and 2021. it is expect it to boost volvo sales and lower the cost of their own autonomous cars for 2021. joining me now is bob o'donnell, along with cory johnson. cory, what you make of this purchase? cory: i think it shows how all of the major carmakers pushing towards morey autonomous vehicles, more self driving features. whether it is self driving or not, they are not getting to that hurdle. it's interesting to towards more autonomous vehicles, me that the way it looks like this will work is volvo will make a cutting-edge vehicle but not a uberdriving the ago vehicle and will do the final steps with hardware and software. emily: this gives us some efforts of uber's self driving efforts because they have this whole team - -- we have seen them around. how does this kind of partnership mean for the broader auto industry? bob: cory brings up some main points. the main automakers are figuring out ways to do this. just remember that we are actually several years away from this stuff really being safe and working and well enough. i think the issue that we should be thinking about is the fact that uber is in a position where it if they don't start moving towards autonomous cars, the longer the economy questions have been made, the more the whole business model gets challenged. i think there is an effort to focus away from some of the issues and focus on this is where we are going to go. i think the implications are pretty big and not everybody has thought through what they are going to be. cory: i don't know the regulatory environment. i don't know if these cars will ever be safe. there is certainly a lot of hope but there are enormous problems that may never be fixed. in silicon valley, we have yet to bfix. they have enormous implications for the uber business model because if you think about the relationship between the car, the driver and the passenger and getting paid is everything for uber. the notion that they could somehow -- the driver is a pretty cheap win . the notion that these cars would be better, given the price points, impossible. emily: we just don't know it yet and an early uber investor has said he thinks this is decades out rather than a few years. we can imagine that is one area that he is disagreed with the former ceo. bob: by the way, it is not just the cars because the amount of hardware you have to add -- those cars you see are hundreds of thousands of dollars each because the technology to do the autonomy is still very expensive. it is going to be a while before that comes down. emily: what do you think about the fact it is although as carmaker? any other cory: they have been working with volvo with a lot of things but a lot of carmakers would love to get $1 billion. volvo love this as well because it will lower the cost because of the investment. they can use this money to invest in these cars so everyone driving could drive one of these cars. it is ensuring the production of this car into the u.s. emily: it is interesting given gm's relationship with lyft. gm was talking to uber. there is a lot of in cestuous between these players. bob: everyone is trying to figure out how to get their piece of self driving. the ridesharing companies, software companies -- everyone sees the potential opportunity, but there are so many questions that remain. again, he feels like it is a little bit of -- hey, we are going to keep distracting you from the core problems, especially if this economy issue becomes a concern in the u.s. emily: bob o'donnell of technalysis, thank you. cory johnson, thank you as well. we have been monitoring this live webcast coming out of the time warner center in new york where at&t ceo randall stephenson is expected to speak. we are listening in. we will bring you any headlines as we have them. all of this in response to the doj saying they will challenge this merger between at&t and time warner. the companyh uber, has been hit with an $8.9 million fine by colorado for hiring employees with serious criminal or motor vehicle offenses. the colorado public utilities commission says it launched an investigation after a driver was accused of assaulting a passenger. the commission found nearly 60 felony drivers were allowed to work in the state, which included drivers with major traffic violations and former prison escapee. coming up, it is the annual holiday slhowhowdown. will online shopping take a dent out of brick-and-mortar retailer's big day? that is next. this is bloomberg. ♪ emily: welcome back. we are following a live webcast happening at the time warner center in new york. that is at&t ceo randall stephenson speaking. he is responding to the doj saying they will sue to stop the at&t-time warner merger. randall stephenson has said in the past they have been prepared in case litigation came their way. we will bring you more headlines as we have them. we are listening to the webcast happening now. first of all, after months of hype, the justice department arrived to save the world but not the box office in general. generated $96 million in the box office, $30 million short of estimates. it sent major movie stocks tumbling today. imax losing a little over four points of their low. thanksgiving may be a few days away but the holiday shopping frenzy is well underway. traditional brick-and-mortar stores like walmart are making preparations to handle the black friday crowd, while e-commerce rivals like amazon are trying to lure customers with cyber monday deals. 70% of holiday shoppers will be physically in stores on black friday, while 72% of shoppers will be online cyber monday. joining me now is sarah, who covers the consumer and retail industry. and still with me is bob o'donnell. sarah, i will start with you. we have a survey that shows a lower percentage of people will be turning out online for black friday. and a good number of people will actually be going to physical stores. what do you make of these mixed results we are seeing? sarah: i think it really reflects the moment we are in generally with online shopping revolution which is that people do ping-pong back-and-forth between these two channels. i think the vast majority of shoppers do shop online and stores and you see that reflected in their plans for the holiday weekend. i can tell you from interviewing people for the past five years on thanksgiving and black friday and in stores, some of the reasons they are out in physical stores is about the prices but also it is a social activity. tons of people are there with her relatives or children and just looking to get out of the house. that will not change this year. emily: it is interesting, for the last several weeks, i've been getting a lot of email in my inbox and it seems like black friday started on november 1. bob: that is exactly right. the whole meaning of black friday is gone. emily: i thought about it and i was like i am waiting until black friday. i know it will come down even more. bob: the point of it being a social event is very true. that is the case in our household. it is more of a social event -- yes, there are some deals, but people like to go out and try things. it is interesting because those deals have been coming for a reallyme, so it is not it is more of a social event hoe that it is not about the price because you could get that same price in a lot of cases on other days. emily: how much shopping is nowally happening on mobile and how is that affecting things? sarah: i think that is an interesting thing to look at. mobile is where a lot of the traffic is. most retailers, over 50% of the traffic to their website now so it is crucially important. page load times, ads working well because people are really turning to that for information. i think it is also interesting that mobile is a very now and how is that affecting things? important part of the in-store experience. you see people using their devices inside the store to see if there are other colors available, sizes available online. they want to read customer reviews. mobile is really integral to this whole weekend at this point. emily: bob, when we look at the numbers on cyber tuesday or whatever it is, because there will still be deals happening, what do you expect to see? bob: i think we will see growth in retail. in thein this momentbob: online shopping experience where people feel like ok, i have done a lot of that. there is something to be said about the other side of it. i think retailers have also learned over the last few years from some of their mistakes and they are trying to make the inexperience of shopping more interesting and more compelling. things like the loyalty card clubs and things like that are getting people to think about working both online and in the store the same way. the mobile point -- it used to be show roaming, you would go to the show room and then buy online. almost the exact opposite is happening now. you do some preparation online and then you go to the store and do more research in the store. i think that reflects the maturity of the online shopping process. are you seeing any changes in strategy when it comes to the retail stores, the department stores as we approach this holiday? sarah: yeah, it seems like they are really varied. target has been doing 10 days of deals for the last two years, trying to fire off the confetti cannon and give you deals all the time. they pulled back and thought it was too distracting for consumers, that they want to have good deals on thursday and friday and win that way. i think we see a lot of variety. some are going for this long stretch of deals, trying to get you in the store as many days as they can and others are trying to save their firepower for that big day. emily: the other thing is deals in november are one thing, but it seems like deals are happening all year long. i feel like every weekend gap is 50% off, j. crew, 30% off and it does not seem to bode well for these companies. bob: exactly. on the other side, you have amazon prime days throughout the year that feels like a black friday event in the middle of the summer or whenever. i think that notion that we built up for years and years around black friday and cyber monday, they are just starting to lose some of their meaning. everyone is experimenting with how and when they can get people to come in and the manner in which they can get them to spend. emily: when it comes to the numbers, what will you be watching specifically? sarah: i am really watching for the strength of the black friday and cyber monday e-commerce numbers. cyber monday is expected to be a $6.6 billion day online and i think black friday is expected to be $5.5 billion. what is really important, those a respected to be the fastest-growing days of the season even though they are coming up the biggest week. i think those will be a good indicator on where the consumer's head is that in how much online shopping we will see over the season. emily: sarah, thank you so much for waiting in. bob o'donnell of technalysis, you are sticking with me. still ahead, of at&t-time warner presser is underway. we have been listening to randall stephenson who that said his company will allow solutions to give his company closer. anthey said cnn is very important to them. we will continue listening and bring you comments as we have them. this is bloomberg. ♪ --ly: back to our top story the u.s. justice department is suing to block at&t's $85 billion takeover of time warner. randall stephenson is speaking at a press conference, saying they will offer solutions to close the deal but di vesting cnn is a nonstarter. joining us now is our senior analyst of litigation. bob o'donnell is still with me in the studio. jennifer, you have been listening in on this call and read the doj's complaint, what are your takeaways? jennifer: i think it is not a surprise to me. the way i read the complaint, it is a very typical series of harm. that the company will have what is considered must have content and it could be profitable for them to engage in a strategy of raising the price of that content to distribution rivals because in the long run, to the extent that the distribution refuses to take the content or paper the content, they would lose subscribers that would move over to at&t or directv to get that content. emily: randall stephenson has said they will offer a solution, divesting cnn is a nonstarter. they said cnn maybe the crown jewel of time warner. that said, you have any knowledge meant from at&t's lawyer saying we know the president has talked about his this like for cnn. you cannot ignore the political side of this you canne political side of this equation. there will be discussions back and forth. the problem is we will never really know how much of an influence it had. the interesting side of the vertical combination is that that just happened a few years back with comcast and nbc. that seemed to be fine. there is arguably legal preceden t, yet now being applied differently and that is the route at&t will follow. emily: we know this deal was on track a couple of months ago. how strong is the argument that there is a problem here? that this vertical integration would be anti-competitive? jennifer: it is going to come down with the evidence which has yet to be seen. from what i saw, they were quoting several documents they seemed to have pulled from at&t and directv which did not look good. we don't know what those documents set as a whole, but it will come down to what the economists do and what they show in terms of the incentive and ability of the company to engage in the kind of discriminatory strategy that the doj is alleging they would engage in. also, how strong their efficiencies are and rationale for the deal, to the extent of the deal could have consumer benefits and the strength of those arguments on their side. emily: what specifically does not look good? jennifer: some comments that -- again, these are just excerpts, so you don't really know the entire context for the comments, but comments such as needing to combine the content with the distribution in order to have a better model to better compete against some of the newer, more inundated options like this skinny packages through sling tv. theseks -- some of suggested that some of the rationale for the deal was in fact to be able to have greater marketplace. emily: so, explained to me, bob, isn't any merger intended to improve a company's ability to marketplace. emily: so, explained to me,comp? bob: it certainly is. you could make the argument that you could make the argument that at&t is worried about its ability to compete with the skinny bundles, with the content that is being delivered via facebook, google, all these other new media platforms. all of a sudden, that does change the dynamic. i think that becomes the question mark. we are seeing the unbundling of a lot of the stuff and the ability to do over the top services is changing the whole cable tv and satellite tv distribution mechanism. a lot of these changes will happen anyway. the question is will this deal drive those changes or not? emily: we are still listening to randall stephenson speaking with at&t's lawyers. what is next? jennifer: at this point, this starts the litigation. thecomplaint has filed and parties will ask for this to be expedited and likely will be. we will see a short period of discovery. the companies are likely to see this information on how politics might have played into this and a trial date will get set. for the six months. emily: we have to leave it there. bob o'donnell, my guest host for the hour. thank you both so much. we will continue to monitor this press conference. you can check out the headlines on the bloomberg terminal. thank you all for watching. we will see you tomorrow. this is bloomberg. ♪ is this a phone? 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