Market Overview

Department Of Justice Says AT&T-Time Warner Deal May Still Have A Chance

Share:
Department Of Justice Says AT&T-Time Warner Deal May Still Have A Chance
Related T
Bank Earnings To The Rescue? Market Seeing Some Green After Strong Results
JPMorgan's Q3 Wireless Cheat Sheet
AT&T/Time Warner trial appeal set for Dec. 6 start (Seeking Alpha)
Related TWX
The Market In 5 Minutes: AT&T-Time Warner Appeal, Johnson & Johnson Lawsuit, Theresa May And More
Survey: More Than One-Third Of Millennials Prefer To Watch Netflix On TV Over Cable

The U.S. Department of Justice said Monday it wants the AT&T Inc. (NYSE: T)-Time Warner Inc (NYSE: TWX) deal blocked outright but, if unsuccessful in its appeal, also supports alternative remedies addressing antitrust concerns.

Officials used their closing arguments in the trial to urge the judge to consider structural solutions, as opposed to behavioral solutions, if the deal is altogether sanctioned.

Why It’s Important

CNBC interpreted the report as “a bit of a concession” on the part of the DOJ, perhaps indicative of AT&T’s triumph.

If the judge rules that AT&T’s $85 billion purchase of Time Warner doesn't violate antitrust laws, the resulting merger would equip a massive distributor with the exclusive content of a massive producer.

"They'll be a gatekeeper to the content their rivals need," Justice Department lawyer Craig Conrath said.

A middle-road ruling, as proposed by the DOJ, would allow AT&T to purchase only parts of Time Warner, which could diminish the threat of such content control.

What’s Next

AT&T and Time Warner will deliver their closing arguments at 2 p.m.

Time Warner spiked higher when this news first hit around 12:54 p.m. and the stock was trading around $94.74 at time of publication.

Related Links:

This Time Warner Analyst Isn't Concerned By DoJ Challenge Of AT&T Deal

3 Other M&A Deals The DoJ's AT&T-Time Warner Lawsuit Could Impact

Photo courtesy of AT&T.

Posted-In: Department of JusticeNews Legal M&A Best of Benzinga

 

Related Articles (T + TWX)

View Comments and Join the Discussion!

Stifel: Gamemakers Survive 'Fortnite' Ambush, Are A Buy Ahead Of Earnings

Despite 'Challenging' Economics, Goldman Sachs Is Bullish On Spotify