Author: CECILIA KANG / Source: New York Times
WASHINGTON — The head of Turner Broadcasting on Wednesday pushed back against one of the central arguments of the government’s case to block the AT&T and Time Warner merger, saying that his company’s channels would not be used as a weapon against rivals if the deal went through.
The Justice Department has argued that Turner, which is owned by Time Warner, owns “must-have” channels like CNN and TNT that the merged company would use as leverage in negotiations with other cable and satellite TV operators. But John Martin, the chief executive of Turner, told a federal court that his channels were not absolutely vital for a cable or satellite business.
“I believe we have must-have, as do other programmers,” Mr. Martin said. “Must-have is another way of saying we have popular programming.”
Much of the Justice Department’s argument in the trial, which started last week, has centered on the importance of Turner’s exclusive sports rights, which include professional and college basketball games. Mr. Martin’s testimony had been one of the most anticipated moments of the trial.
The Justice Department called on Mr. Martin as an adversarial witness in large part to present emails and memos he wrote that revealed how important Turner content is to Time Warner’s business, and how critical Turner is for cable and satellite operators.
In one memo presented Wednesday, from 2016, Mr. Martin emphasized the importance of renewing rights to the N.C.A.A. college basketball championships, known as March Madness.
“March Madness plays a critical role” for Turner, Eric Welsh, a lawyer for the Justice Department, read from the email.
It’s “not just important but has a critical role,” he said to Mr. Martin.
Mr. Martin, who joined Time Warner in 1993, was one of the first witnesses called by the Justice Department. He has been vocal critic of the government’s lawsuit to block the merger, calling the Justice Department “clueless” last month.
Mr. Martin’s testimony revealed how the trial has placed company executives, who normally put a bold face on their businesses for investors, in a tricky position. AT&T and Time Warner played down their influence. Their rivals have described their weaknesses in full detail.
Mr. Martin tried to walk a thin…
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