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AT&T wins: Judge clears $85 billion bid for Time Warner with no conditions

0 comments, 131 views, posted 7:09 am 13/06/2018 in Business by LordViscera
LordViscera has 18155 posts, 2573 threads, 344 points, location: 1123 6536 5321
Jarl of Glencoe

A federal judge said Tuesday that AT&T's $85.4 billion purchase of Time Warner is legal, clearing the path for a deal that gives the pay-TV provider ownership of cable channels such as HBO and CNN as well as film studio Warner Bros.

U.S. District Court Judge Richard Leon did not impose conditions on the merger's approval. He also urged the government not to seek a stay when issuing his decision in a closed-door room with reporters.

AT&T General Counsel David McAtee said the company was happy with the result.

"We are pleased that, after conducting a full and fair trial on the merits, the Court has categorically rejected the government's lawsuit to block our merger with Time Warner," McAtee said in a statement. "We look forward to closing the merger on or before June 20 so we can begin to give consumers video entertainment that is more affordable, mobile, and innovative."

Shares of Time Warner jumped roughly 5 percent in extended trading. Shares of AT&T dropped as much as 2 percent.

Assistant Attorney General Makan Delrahim said the Justice Department was disappointed with the decision.

"We continue to believe that the pay-TV market will be less competitive and less innovative as a result of the proposed merger between AT&T and Time Warner. We will closely review the Court's opinion and consider next steps in light of our commitment to preserving competition for the benefit of American consumers," Delrahim said in a statement.

The outcome of the trial could spur a wave of deals in the telecom and media industries, as well as clear the way for future vertical mergers, where a company buys its supplier. Comcast has been eyeing a similar merger to combine production and distribution in a competing bid for Twenty-First Century Fox and was preparing to announce an offer as soon as Wednesday if Leon ruled in favor of AT&T in the trial, people familiar with the matter told CNBC.

Comcast shares dipped 4 percent after the AT&T-Time Warner decision. Shares of Fox rose 4 percent.

Over the last year, Time Warner (TWX) has fluctuated between $85.88 - $103.90 A 5% increase in one day is a huge windfall for anyone who bought it low, and if someone was fortunate enough to get it 3 years ago at about $70.00, then with 1000 shares you would have made $26,222.00 in your investment as profit

Extra Points Given by:

tamsnod27 (5), Flee (5)

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