CNBC News reported on Thursday that the United States Department of Justice is reportedly considering an antitrust lawsuit against AT&T’s acquisition of Time Warner, causing Time Warner shares to drop.
According to a report by the Wall Street Journal, the U.S. Department of Justice’s antitrust division is preparing for the suit in case it decides to sue in an effort to block the deal from taking place.
The Wall Street Journal, citing unnamed sources close to the deal, reported the department and the two companies are currently discussing possible terms that would allow the deal to receive the government’s approval.
Sources familiar with the deal said AT&T officials have recently met with the Department of Justice and that the department has not yet made a final decision, with the source claiming both of the parties are not close to finalizing any agreement.
“Vertical mergers like this one are routinely approved because they benefit consumers without removing any competitor from the market,” an AT&T spokesperson told CNBC. “While we won’t comment on our discussions with (the Department of Justice), we can say that this transaction should be no exception.”
Last October, AT&T had reached an agreement to purchase Time Warner for more than $85 billion.
(Crusader Journal Staff)