Market Overview

Time Warner Under Pressure As Trump Win Could Derail AT&T Deal

Share:
Time Warner Under Pressure As Trump Win Could Derail AT&T Deal

Shares of Time Warner Inc (NYSE: TWX) were trading lower by more than 2 percent Wednesday . The parent company of HBO and other media properties agreed to be acquired by AT&T Inc. (NYSE: T), but the $100 billion merger (which was already questioned by analysts and investors) requires the approval of the federal government.

Donald Trump made his view of the proposed merger perfectly clear when he was campaigning. As noted by NPR, Trump said the merger is a "deal we will not approve in my administration because it's too much concentration of power in the hands of too few."

Trump also found some support across the aisle: former Presidential candidate and Democratic Sen. Bernie Sanders.

Sanders Tweeted that the government "should kill the Time Warner/AT&T merger" because it will "mean higher prices and fewer choices for the American people."

According to Fortune, AT&T's CEO Randall Stephenson could fight back against a merger rejection in court. However, doing so would result in a long and drawn out legal battle which isn't ideal at a time when its other businesses are faces challenges of their own.

AT&T would ultimately have to return to the drawing board. The company does own an internet video service called Fullscreen, which it could build through smaller acquisitions.

Posted-In: AT&T Time Warner Merger Donald Trump HBOM&A News Movers Trading Ideas Best of Benzinga

 

Related Articles (T + TWX)

View Comments and Join the Discussion!
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 vipaccounts@benzinga.com

15 Biggest Mid-Day Gainers For Wednesday

In Order To Make A Turnaround, Valeant Will Need To Go Back To Basics