WASHINGTON (Reuters) – On Tuesday, June 12, 2018- AT&T Inc. won court approval to buy Time Warner Inc. for $85 billion, after neglecting an attempt by U.S. President Donald Trump’s administration to block the deal and likely setting off a wave of corporate mergers.

The deal, which could close till next week, is seen to form a turning point for a media industry, which has been upended by companies like Netflix Inc and Alphabet Inc’s Google which produce content and sell it online directly to consumers, without requiring a pricey cable subscription. Cable, satellite and wireless carriers all see buying content companies as a way to add revenue.

“That’s a legal shocker,” added J.B. Heaton, an attorney, and consultant on litigation and regulatory proceedings. He said, “I think we’ll see now that companies will be much more confident about vertical mergers,” he added, referring to deals where a company merges with a supplier. Shares of AT&T decreased about 1.3 percent in after-hours trade following the decision, while Time Warner rose more than 5 percent.

Twenty-First Century Fox increased by around 7 % in trade, after the ruling on expectations that Comcast and Walt Disney Co. could begin a bidding war to conquer its media assets. Comcast and Walt Disney also faced a fall of around 4.3% and 1.8%.

Mary Ann Halford, senior adviser to OC&C Strategy Consultant said, “This will be a blockbuster summer for media mergers”. Senator Richard Blumenthal, the Democrat, in a statement said, “Consumers should fear a cascade of unchecked mergers and acquisitions to further consolidate the telecom industry resulting in less choice, fewer competitors, and higher prices”.

The Justice Department, filed a lawsuit to defend the deal in November 2017, replying that ‘AT&T’s ownership of both DirecTV and Time Warner would give AT&T unfair leverage against rival cable providers that relied on Time Warner’s content, such as CNN and HBO’s “Game of Thrones”.

Related Articles
Next Story
Latest Business & Finance News

Big Chain Convenience Stores Hike Prices at the Remote Branches

November 19, 2018
Going Viral
As Parliament Pushes UK Prime Minister to One More Defeat , She Would Face Another Brexit Humiliation

As Parliament Pushes UK Prime Minister to One More Defeat , She Would Face Another Brexit Humiliation

by Haimantee Ghosh February 15, 2019
British legislators defeated UK Prime Minister Theresa May in a representative vote over her Brexit strategy, spoiling her commitment to the leaders of the European Union that she can get the unwanted withdraw deal sanctioned if they approve her allowances. The legislators defeated the government 303-258 on the direct motion seeking them to reassert support for her plan to seek alterations. While the vote does not push the government to...