Market Overview

Could Disney Hold Up The AT&T-Time Warner Deal?

Share:
Could Disney Hold Up The AT&T-Time Warner Deal?
Related DIS
The Legacy Of Stan Lee: Marvel Comics Mastermind, Box Office Gold
Bulls & Bears Of The Week: Apple, Disney, Ford, Target And More
How Is Netflix Performing In India (Seeking Alpha)
Related FOXA
The Street Weighs In On Disney's Q4 Earnings, ESPN And Streaming Among Highlights
Cold Start: Worries About Hawkish Fed, Rising Prices Seem To Weigh On Sentiment
Variety: Two studios set to restart video-release fight (Seeking Alpha)

Walt Disney Co (NYSE: DIS)'s proposed acquisition of most of Twenty-First Century Fox Inc (NASDAQ: FOXA)'s media and entertainment assets is one of two mega mergers in the media sector, the other being AT&T Inc. (NYSE: T)'s offer to buy Time Warner Inc (NYSE: TWX).

The Analyst

Analysts at Height Securities.

The Thesis

AT&T was quick to announce it will give 200,000 employees a $1,000 bonus after Congress passed a tax reform plan, but there may be ulterior motives behind the move, according to Height. The bonus, coupled with a $1-billion increase to AT&T's capex program, is "clearly aimed at currying favor" with President Donald Trump's administration, the analysts said. 

Disney will provide testimony on the AT&T-Time Warner merger as a "major content player," the report said. For the time being, Disney hasn't hinted what specific points of concern it will raise, but some media reports are suggesting the Department of Justice wants Disney and Fox to testify against the merger.

"In this context, AT&T's announcement this week aligns with the president's agenda that the tax cuts will benefit American workers," the Height report said. "However, will such a move be enough to bring the administration and the DOJ to the table and settle rather than litigating all the way."

Settlement talks between AT&T-Time Warner and the DOJ have so far failed to reach a consensus, and AT&T's CEO Randall Stephenson stated that his company "does not intend to settle this matter out of simple expediency," according to Height. 

Related Links:

AT&T And Time Warner Extend Deadline To Resolve Regulatory Issues

Wall Street Reacts To Disney's Purchase Of Fox's Entertainment Assets

Latest Ratings for DIS

DateFirmActionFromTo
Nov 2018ArgusMaintainsBuyBuy
Oct 2018BarclaysUpgradesEqual-WeightOverweight
Oct 2018Morgan StanleyMaintainsOverweightOverweight

View More Analyst Ratings for DIS
View the Latest Analyst Ratings

Posted-In: entertainment Height Securities media Tax ReformAnalyst Color News M&A Analyst Ratings Best of Benzinga

 

Related Articles (DIS + FOXA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
LXFTKeyBancDowngrades0.0
CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
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.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

An Innovative ETF Of ETFs

Gene Munster: Apple Could Increase Buybacks, Dividends After Tax Reform