Court allows AT&T purchase of Time Warner in major media acquisition

A federal judge approved AT&T Inc’s attempt to purchase Time Warner Inc with no restrictions Tuesday, despite objections by the Department of Justice, which said the deal violates antitrust law.

AT&T originally announced its intentions to purchase Time Warner, which owns Atlanta-based Turner Broadcasting, in 2016. The $85 billion move has been on hold for a year and a half as the two companies have faced a challenge from the Department of Justice.

The ruling, which was handed down by the U.S. District Court for the District of Columbia, could have an impact on potential mergers and acquistions between content providers and creators in the near future.

The federal government maintained that the purchase violated antitrust law because AT&T owns satellite provider DirecTV, a content distributor, and Time Warner is a content producer. The DOJ said the move would result in higher prices for consumers and lessen competition in the realm of subscription television.

AT&T argued the move is legal, and said an acquisition of Time Warner would benefit consumers by creating an alternative to traditional cable and would improve AT&T’s advertising model, cutting costs for consumers.

Tuesday’s ruling could impact potential future acquisitions between TV providers and content creators which are on the horizon. Cable company Comcast announced in May it is considering buying 21st Century Fox, with the exception of certain properties, including Fox News and Fox Broadcasting.

Return to for more information.

Reader Comments ...

Next Up in Business

Smart padlock protects front porch deliveries
Smart padlock protects front porch deliveries

The BoxLock is designed to prevent theft of delivery packages left by the front door. In addition to the anti-theft aspect, packages are protected from bad weather, which has victimized me. Nothing like having a box soaked in a thunderstorm, etc. The BoxLock smart padlock solves both these problems. According to BoxLock, this is the first of its kind...
These Android phones have security defects out of the box
These Android phones have security defects out of the box

At least 25 Android smartphone models — 11 of which are sold by major U.S. carriers — carry vulnerabilities out of the box, making them easy prey for hackers, according to a new study from security researchers. Researchers from the firm Kryptowire found 38 vulnerabilities in 25 Android phones, according to Wired. They range from being able...
How to get data from one device to another

Q: I copied some photos from my camera’s memory card to a newly created folder on my two-year-old Surface Pro tablet PC, using a USB card reader. I could see the photos after I transferred them, but when I restarted the PC the photos were gone. I haven’t gotten any “low memory” warnings. What’s wrong? — Angie LaMere...
T-Mobile gets rid of robot system for customer service calls
T-Mobile gets rid of robot system for customer service calls

SEATTLE — T-Mobile is getting rid of that robotic voice on its customer service lines, the company announced recently. The telecom said it would connect users straight to a team of customer representatives, unique to their own city, when they call customer service. “ ‘Your call is important to us’ are the six emptiest words...
More Stories