AT&T Inc (NYSE:T) And DOJ Disagree Over The Time Warner Inc (NYSE:TWX) Deal


The stock of AT&T Inc (NYSE:T) closed at $35.08 gaining 1.08% in yesterday’s trading session. AT&T Inc and the Justice Department on Thursday proceeded to trade legal jabs and that took place at a moment when the federal judge was opening proceedings on whether or not the company’s move to purchase Time Warner Inc (NYSE:TWX) was in violation of the antitrust laws.

Richard Leon, who happens to be the U.S District judge, did not have quite much to say but it is worth noting that the companies spend much of their time launching attacks of the legal position of the opposing side.

Much has been going on but what is causing much reaction is the decision to raise prices for pay-TV subscribers, a matter that is expected to cost the company almost 45 cents (A57 cents) a month.

The telecommunications guru has been rather critical of the case by the Justice Department and in a statement it made a close reference to an analysis by the government. And from that point it was clear that the deal was going to result in pretty minimal consumer harm. AT&T takes the strong standpoint that the merger with HBO and CNN brings to light the possibility of it competing effectively with rivals.

At this point in time the two are jostling over the merits and demerits of the deal and they will soon be making preparations to undertake a trial and according to a person familiar with the matter it will be conducted in Washington.

Fundamentally, the case is a profound representation of what many are terming a rare legal challenge .It is being targeted at the two companies and each of them operates on its own part in the same supply chain.

It is worth noting that deals of that particular nature are always approved with settlements not forgetting that the ruling made in line with the Time Warner case in one way or the other could potentially end up affecting a number of similar combinations that will be awaiting approval.


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