Market Overview

Jim Stewart: AT&T-Time Warner Deal Has A 98% Chance Of Regulatory Approval

Jim Stewart: AT&T-Time Warner Deal Has A 98% Chance Of Regulatory Approval

The New York Times' Jim Stewart was a guest on CNBC's "Squawk Box" segment on Monday to offer his take on AT&T Inc. (NYSE: T)'s proposed acquisition of Time Warner Inc (NYSE: TWX).

Stewart places a 98 percent likelihood that acquisition should be approved by the regulatory bodies. He noted that the deal is a "classic vertical integration" move, and the two companies don't compete directly against each other in any way.

Stewart continued that vertical integration deals have been historically approved, including Comcast Corporation (NASDAQ: CMCSA) and NBC. However, the bigger issue for investor to consider is the fact that vertical integrations often don't work out for the acquirer.

Related Link: The Dinner Party That Led To The Merger Of AT&T And Time Warner

Stewart went on to point out that the failed merger between Comcast and Time Warner Cable in 2014 was more of a horizontal integration since both companies operate directly in the cable business.

"It's tough for a management like AT&T to suddenly step into a business it's never been in, doesn't know anything about and manage it," he said. "So I think there are a lot of practical issues for AT&T shareholders."

Moreover, AT&T's business has been purely in telecommunications and its acquisition with DirecTV has yet to be finalized. As such, AT&T's management will now have to deal with new sets of challenges, including dealing with Hollywood stars and negotiating contracts for films and TV content.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for CMCSA

Oct 2019Initiates Coverage OnMarket Perform
Oct 2019MaintainsBuy
Sep 2019Initiates Coverage OnBuy

View More Analyst Ratings for CMCSA
View the Latest Analyst Ratings

Posted-In: AT&T Time Warner Merger CNBCAnalyst Color M&A Analyst Ratings Media Trading Ideas General Best of Benzinga


Related Articles (CMCSA + T)

View Comments and Join the Discussion!

Latest Ratings

TOLGoldman SachsInitiates Coverage On42.0
KBHGoldman SachsInitiates Coverage On36.0
YEXTSunTrust Robinson HumphreyMaintains28.0
LHCGSunTrust Robinson HumphreyMaintains160.0
DLRSunTrust Robinson HumphreyMaintains140.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Coffee Futures Higher

Top Performing Industries For October 24, 2016