Remember when everyone thought the Time Warner and AT&T deal was a sure thing? Turns out, not everyone was on board.
On Thursday, Time Warner (NYSE:$TWX) shares fell after a newspaper reported that the Department of Justice (DOJ) is considering issuing an antitrust lawsuit that would block AT&T (NYSE:$T) from acquiring the media company.
After The Wall Street Journal reported that the DOJ’s antitrust division is preparing for legal action in case it decides to sue in an attempt to block the deal. While AT&T’s stock was down marginally, Time Warner’s share price was down 4.1%.
Meanwhile, the department and both companies are said to be discussing potential terms that would allow the deal to go forward with the government’s blessing, the Journal reported, citing people close to the matter.
Representatives of AT&T have been meeting with Justice officials over the course of the past couple weeks, and the department is said to have not made a final decision.
Here’s what AT&T had to say:
“When the DOJ reviews any transaction, it is common and expected for both sides to prepare for all possible scenarios. For over 40 years, vertical mergers like this one have always been approved because they benefit consumers without removing any competitors from the market. While we won’t comment on our discussions with DOJ, we see no reason in the law or the facts why this transaction should be an exception.”
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