The approval of the proposed AT&T/DirecTV is likely,...

The approval of the proposed AT&T/DirecTV is likely, although concessions could get tightened following the release last week of AT&T’s public interest statement (CD June 13 p3), said Paul Gallant, a Guggenheim Partners analyst. Reduced pay-TV competition and potential upward pressure on prices “represent the biggest risk” to this deal, he said Friday in a research note. “We suspect the DOJ and FCC will have concerns with the increased concentration in the pay TV market” that would result from the transaction, he said. The deal commitments are “well-designed,” he said. AT&T’s commitment to upgrade broadband in 15 million homes is a material selling point, he said.