- Brendan McDermid/Reuters
- AT&T offered to buy Time Warner in an $85 billion dollar deal last year. Shares of both companies are falling after reports the DOJ is weighing an antitrust lawsuit over the merger.
Trading of Time Warner stock was halted Thursday morning after a Wall Street Journal report that the Department of Justice is considering filing an antitrust lawsuit over AT&Ts potential acquisition of the company.
Shares of Time Warner fell more than 6% from their $98.28 opening price, settling at $93.60.
AT&T, on the other hand, initially jumped over 2%, before falling back a half-percent below its opening price.
The $85 billion deal was announced last October, and was considered likely to be approved. A merger would allow AT&T to deliver Time Warner content to any device as viewing habits shift from traditional linear TV to over the top web and on-demand services.
An AT&T spokesperson told The Wall Street Journal: “Vertical mergers like this one are routinely approved because they benefit consumers without removing any competitor from the market. While we won’t comment on our discussions with DOJ, we can say that this transaction should be no exception.”
- Markets Insider