U.S. federal judge Richard Leon ruled in favor of AT&T in the lawsuit brought by the Department of Justice to block its acquisition of Time Warner.
AT&T applauded the ruling saying it now expects to complete the $85 billion acquisition of Time Warner by June 20th.
- The deal was first announced in October 2016.
- President Donald Trump has argued against the deal, saying it represents too much concentration of power.
- Time Warner, which was formed in 1990 through the merger of Time Inc. and Warner Communications, encompasses a number of premium media properties, including HBO, New Line Cinema, Turner Broadcasting System, The CW Television Network, Warner Bros., CNN, Cartoon Network, Boomerang, Adult Swim, DC Comics, Warner Bros. Animation, Castle Rock Entertainment, Cartoon Network Studios, Esporte Interativo, Hanna-Barbera Productions, Warner Bros. Interactive Entertainment. It also owns 10% of Hulu.
- AT&T anticipates annualized cost synergies of $1.5 billion by the end of the third year after close.
- Following the close of the Time Warner deal, AT&T plans to introduce AT&T Watch, a skinny package without local programming or sports-only channels.
- By the end of the year, the company also expects to launch a premium streaming experience that will compete with traditional linear TV products for in-home use. The product will be app-based with a small device that connects to customers’ TVs and home broadband.
“This is a perfect match of two companies with complementary strengths who can bring a fresh approach to how the media and communications industry works for customers, content creators, distributors and advertisers,” stated Randall Stephenson, AT&T, on the day the deal was first announced in October 2016.