DOJ Files Suit to Block Merger Between AT&T and Time-Warner

By Anna Breuer on 20 November 2017
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IMG_0239The U.S. Department of Justice filed suit Monday to block AT&T’s $85.4 billion bid to acquire Time Warner.

The move came as a surprise as many observers believed that the Trump administration would not obstruct such blockbuster deals.

AT&T is already one of the country’s largest telephone and Internet providers and, following its 2015 acquisition of DirecTV, also the largest television content distributor in the United States. Time Warner owns HBO, Warner Bros., and Turner Broadcasting, which in turn owns the cable news channel CNN.
Although the two companies are not competitors, the agency said that the deal would not be in the public interest.

AT&T later said in a statement it would seek an expedited hearing.

“This merger would greatly harm American consumers,” said Makan Delrahim, the assistant attorney general for antitrust, in a statement. “It would mean higher monthly television bills and fewer of the new, emerging innovative options that consumers are beginning to enjoy.”

If the DOJ prevails in the courts, it won’t be the first time AT&T was unable to consummate a merger. In 2011, the telecom giant announced plans to acquire T-Mobile from Deutsche Telekom for $39 billion but that deal was blocked by the Federal Communications Commission later that year.

(Photo: Accura Media Group)

Accura News

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