Market Overview

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

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

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 JusticeM&A News Legal Best of Benzinga


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