Why is Walt Disney (NYSE: DIS) opposed to the AOL-Time Warner merger?
Disney is primarily concerned with access: access to Time Warner’s cable properties, and access to AOL’s paying subscribers. Combined, AOL-Time Warner could make access to both assets very difficult if it wished. So, Disney asked regulators to require that the combined company share its high-speed cable with unaffiliated Internet providers. Public interest groups have made the same request, but the FCC has not acted, and it may not need to. Why not? Because AOL and Time Warner already publicly stated on February 29 that the new company will provide open access to its cable network. However, the possibility for “fine print” (limitations, fees, preferences) is keeping outsiders like Disney concerned. Meanwhile, Disney also argues that content regulations must be implemented to keep AOL-Time Warner from optimizing its content for its audience and in the process “weakening” the position of outsiders’ content. So, in a nutshell, Disney opposes the merger because it fears the competitive ram