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US appeals against $80bn AT&T-Time Warner deal | |
(about 3 hours later) | |
The US government has decided to appeal against a landmark court ruling that cleared the way for telecoms giant AT&T to buy Time Warner. | The US government has decided to appeal against a landmark court ruling that cleared the way for telecoms giant AT&T to buy Time Warner. |
The ruling was a significant defeat for the US Justice Department, which had argued the deal would lead to less competition and higher consumer prices. | The ruling was a significant defeat for the US Justice Department, which had argued the deal would lead to less competition and higher consumer prices. |
A federal judge rejected those claims last month, allowing the takeover to go through without conditions. | A federal judge rejected those claims last month, allowing the takeover to go through without conditions. |
AT&T completed the $81bn (£60bn) deal shortly after. | AT&T completed the $81bn (£60bn) deal shortly after. |
David McAtee, AT&T general counsel, said the company was surprised by the Justice Department move and would defend the court's approval. | David McAtee, AT&T general counsel, said the company was surprised by the Justice Department move and would defend the court's approval. |
"The court's decision could hardly have been more thorough, fact-based, and well-reasoned," he said. | "The court's decision could hardly have been more thorough, fact-based, and well-reasoned," he said. |
The DoJ has not said on what grounds it would challenge the approval. | The DoJ has not said on what grounds it would challenge the approval. |
The appeal will extend a battle with competition regulators that started in 2016, when AT&T first announced its plan to buy Time Warner. | The appeal will extend a battle with competition regulators that started in 2016, when AT&T first announced its plan to buy Time Warner. |
AT&T, which has a sizable mobile, broadband and satellite television business, said it wanted Time Warner's media assets - which include TV networks HBO and CNN - to better compete with rivals such as Netflix and Amazon. | AT&T, which has a sizable mobile, broadband and satellite television business, said it wanted Time Warner's media assets - which include TV networks HBO and CNN - to better compete with rivals such as Netflix and Amazon. |
As a candidate for president, Donald Trump said he opposed the tie-up, saying it would lead to "too much concentration of power in the hands of too few". | As a candidate for president, Donald Trump said he opposed the tie-up, saying it would lead to "too much concentration of power in the hands of too few". |
Consumer advocacy groups also raised alarms. | Consumer advocacy groups also raised alarms. |
The Department of Justice sued to block the deal in 2017, launching the biggest anti-trust suit in decades. | The Department of Justice sued to block the deal in 2017, launching the biggest anti-trust suit in decades. |
The case was closely followed in the US, where there is growing concern that a small number of companies dominate many sectors. | The case was closely followed in the US, where there is growing concern that a small number of companies dominate many sectors. |
The IMF highlighted the issue of "mega-firms" in its recent review of the US economy. | The IMF highlighted the issue of "mega-firms" in its recent review of the US economy. |
Last month's approval encouraged other companies that were considering their own acquisitions. | Last month's approval encouraged other companies that were considering their own acquisitions. |
Comcast started a bidding war with Disney for the entertainment assets of Rupert Murdoch's 21st Century Fox in the days following the court ruling. | Comcast started a bidding war with Disney for the entertainment assets of Rupert Murdoch's 21st Century Fox in the days following the court ruling. |
AT&T shares slipped 1% in after-hours trade in New York. It recently announced price rises for its streaming television service. | AT&T shares slipped 1% in after-hours trade in New York. It recently announced price rises for its streaming television service. |