The highly anticipated deal between AT&T and Time Warner has been a long and difficult process. Late last year, the American government tried to stop the $85 billion deal, but after a six-week trial, the judge cleared the case and gave AT&T a green light to continue.
- A merger between AT&T and Time Warner has officially been in the works since 2016, and yesterday the final approval was given.
- The deal is one of the biggest in the telecom industry with a price tag of $85 billion.
- The Justice Department tried to stop the deal based on the notion that the two companies would become too big and that it would destroy competition in the country.
On Tuesday a federal judge gave his final approval for the AT&T and Time Warner merge that has been going on since 2016. To everyone’s surprise, the judge cleared the deal without any conditions and the final steps in the merger process will be completed on June 20.
“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,” AT&T General Counsel David McAtee said in a statement right after the trial.
The judge’s ruling in favor of AT&T means that all of Time Warner’s products and services including HBO, DC Comics, CNN, and the production company Warner Bros will officially switch owners by next week.
The merger will create an enormous media empire that very few companies will have a chance to compete with, Comcast and the Walt Disney Company being two of very few.
Time Warner’s shares popped by 5 percent after the market closed while AT&T’s shares dropped by over 2 percent.
The AT&T Time Warner Merger is One Of Many Major Developments in the Industry
News about the deal being finalized comes less than a week after Verizon announced that they’re appointing a new CEO in August. It also happened days before Comcast is expected to put in a bid for parts of 21st Century Fox – the same assets that the Walt Disney Company has recently bid on.
Fox stocks jumped by 6 percent after yesterday’s ruling in anticipation for the race that is about to start for the company’s assets.