The tension continues as the AT&T-Time Warner deal struggles to stay afloat.
On Thursday, AT&T’s chief executive Randall Stephenson announced that the wireless company will not sell cable network CNN to win antitrust approval of its submitted $85.4 billion purchase of Time Warner Inc (NYSE:$TWX).
Further, Stephenson said AT&T (NYSE:$T) is prepared to fight the government in court if the two parties cannot come to an agreement.
According to a government official, who spoke to Reuters on Thursday, Justice Department staff have told the company to either sell its DirectTV unit or Time Warner’s Turner Broadcasting unit, which happens to include news giant CNN. The Justice Department recommended AT&T do this on the grounds that an integrated company would raise costs for competitors.
AT&T is still communicating with the government over approval of the deal, but thus far, the two sides have disagreed over the necessity of asset sales.
“If we feel like litigation is a better outcome then we will litigate,” Stephenson said Thursday.
Going even further, the CEO said the company has been ready to go to court ever since the deal was announced in October last year.
AT&T has indicated that it will not sell DirectTV, which it acquired two years for $49 billion.
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