Despite Trump's concerns, AT&T-Time Warner deal likely getting done: analysts

Source: 
Author: 

President-elect Donald Trump may not like the idea of AT&T and Time Warner merging, but there may be little he can do to stop it, according to analysts. AT&T’s $85 billion deal for Time Warner is likely to go through, although it may come with concessions, including a possible spin-off of major Time Warner brands, Wells Fargo analyst Jennifer Fritzsche said in a research note. “While we expect there likely will be concessions (possibly a CNN spin-off, and continued infrastructure investment by T), from a legal standpoint, we note that if denied this deal would be precedent setting given the fact that no vertical merger in the TMT space has been denied,” wrote Fritzsche, adding that, while many mergers cut jobs, the small amount of overlap in core business and expertise for AT&T and Time Warner likely means no major headcount reductions.

BTIG analyst Rich Greenfield shared the view that it’s unlikely the merger could be halted. He said that it would be a “novel interpretation of the law” should the deal be blocked.


Despite Trump's concerns, AT&T-Time Warner deal likely getting done: analysts