Nearly a month after the merger was approved, the Department of Justice now says it will appeal the AT&T and Time Warner deal. The original deal was approved for $85.4B and had no strings attached at the time.
The Department of Justice on Thursday is appealing (via Bloomberg) the case on the grounds of antitrust. It filed a two-page notice in federal court.
The case will be eyed by many as this will be the first time in a long time that courts have let a merger happen where the two companies are in two very similar markets. It will also set a precedent for companies planning to make similar deals, such as Fox and Disney.
AT&T’s General Counsel David McAtee says (via CNBC) that he’s surprised about the appeal:
In the past, these antitrust deals were being approved with heavy restrictions to allow such business to operate.
For those not in the loop, AT&T and Time Warner have been attempting a merger for years, and the deal was finally approved last month. If today’s appeal gets approved, the deal could easily be reversed. It’s worth noting that AT&T also owns DirecTV, yet another traditional cable provider.
Which side of the coin do you sit on? Are you with or against the AT&T and Time Warner merger? Shout in the comments below!
