iWorld
US DOJ to appeal AT&T-Time Warner deal
MUMBAI: The US Department of Justice (DOJ) will appeal the AT&T-Time Warner merger approval which was cleared last month by a lower court. Following the announcement, AT&T’s share fell down more than one per cent in after-hours trading .
Last month, a federal judge ruled approved the $85.4 billion deal as legal without any imposed condition. The DOJ maintained that the deal would make the pay TV market less competitive and less innovative as well. It also said that it would lead to higher prices for consumers.
“The court’s decision could hardly have been more thorough, fact-based and well-reasoned. While the losing party in litigation always has the right to appeal if it wishes, we are surprised that the DOJ has chosen to do so under these circumstances. We are ready to defend the court’s decision at the DC Circuit Court of Appeals,” AT&T general counsel David McAtee said.
Other than AT&T, the ruling was also a green light for similar deals on the way. The company has already started moving ahead with plans and holding discussions for what to do with properties like HBO.
