Green light for AT&T’s purchase of Time Warner


The Department of Justice's attempt to block the merger drew suspicions of political motivations


The companies are looking to move forward with the deal quickly, as the break-up date for the merger is on June 21, after which AT&T would have to pay Time Warner $500m as a break-up fee. The deal has been on hold since October, when the government sued in an attempt to stop it.
“The parties have waged an epic battle, under extremely restricted deadlines, to litigate and try this historic vertical merger case,” said US District Court judge Richard Leon in his opinion.
“It has been a herculean task for all the parties and the court. Each side has had its proverbial day in court. The court has now spoken and the defendants have won.”
The Department of Justice's attempt to block the merger, while not unusual in potential antitrust cases, drew suspicions of political motivations. President Donald Trump has been vocal in his opposition to the merger since its announcement, which some, including Time Warner, have attributed to his deep dislike for Time Warner's subsidiary, CNN.
The ruling paves the way for other large conglomerates to make bids for firms along their supply chain. Notably, this could be a green light for Comcast to lodge a competing bid, which it has already been considering, against Disney for 21st Century Fox's entertainment assets.

Print Friendly, PDF & Email
No tags for this post.

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *