Skip to main content

Market Overview

AT&T Resists DOJ Order To Divest Time Warner's CNN For Merger Approval

Share:
AT&T Resists DOJ Order To Divest Time Warner's CNN For Merger Approval

What Happened: AT&T Inc. (NYSE: T) is preparing to resist Justice Department orders to divest Time Warner Inc (NYSE: TWX)’s CNN at the risk of forfeiting approval for its $84.5 billion merger.

"AT&T has been told by the US Department of Justice that it needs to sell CNN" to get the acquisition approved, three people with direct knowledge of the negotiations told FT. AT&T rejected allegations that the news segment violates competitive regulations and is reportedly prepared to take the Trump Administration to court over the issue.

President Donald Trump has opposed the acquisition since it was first announced in 2016 and promised during his presidential campaign to block it.

What’s Next: As of last month, Time Warner and AT&T expected the deal to close by the end of the year. Now, they’re less confident.

"We are in active discussions with the DOJ,” AT&T CFO John Stephens said at a Wednesday investor conference. "Those are continuing on. I can't comment on those discussions, but with those discussions, I can now say that the timing of the closing of the deal is now uncertain.”

A spokesperson told Benzinga the company had no additional comment beyond Stephens' remarks.

The Stock’s Reaction: AT&T dropped 1 percent to $33.02 and Time Warner 1.3 percent to $89.32, and both were trending downward as of publication.

Update: “Until now, we’ve never commented on our discussions with the DOJ. But given DOJ’s statement this afternoon, it’s important to set the record straight," Stephenson said in a statement Wednesday afternoon. "Throughout this process, I have never offered to sell CNN and have no intention of doing so.”

 

Related Articles (T + TWX)

View Comments and Join the Discussion!

Posted-In: DOJ Justice DepartmentM&A News Legal Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
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