DOJ Weighs Suit Against AT&T’s Deal for Time Warner

Apparently, the Justice Department is considering a lawsuit challenging AT&T's planned acquisition of Time Warner if the government and companies can’t agree on terms that would satisfy antitrust concerns. The department’s antitrust division is preparing for litigation in case it decides to sue to block the deal. Simultaneously, the department and the companies are discussing possible settlement terms that would lead to the deal winning government approval with conditions attached. The two sides, however, aren’t yet close to an agreement, apparently.  The outcome could go either way and the timing of any decision remains uncertain.

Most outside observers have believed the deal, valued at $85 billion when it was announced in 2016, was likely headed for government approval. The recent developments aren’t necessarily an indication that the deal is in trouble, but they do suggest more regulatory uncertainty for the companies than many analysts anticipated. “Vertical mergers like this one are routinely approved because they benefit consumers without removing any competitor from the market,” an AT&T spokesman said. “While we won’t comment on our discussions with DOJ, we can say that this transaction should be no exception.”