Cogent Urge US to Restrain AT&T in DirecTV Deal

Data carrier Cogent Communications Holdings Inc. called for AT&T/DirecTV merger conditions similar to what Netflix recently called for to ensure Web services aren’t harmed, according to a regulatory filing. It may be “good news” for the AT&T deal that Netflix and Cogent are asking for conditions, said Craig Moffett, an analyst at MoffettNathanson who expects the deal to close. “The broad consensus is that Netflix played a central role in scuttling the Comcast deal,” Moffett said. Now, he said, “two of the most ardent opponents are tacitly blessing the idea of the merger as long as there are appropriate conditions.”

DirecTV Chairman Michael White said he expects the deal to close this quarter. Once it acquires DirecTV and its video business, AT&T will have an increased incentive to hinder streaming entertainment offerings, Netflix and Cogent said in filings dated May 4 and April 30 at the Federal Communications Commission.