Court Rejects DOJ Antitrust Challenge To AT&T/Time Warner

After eighteen months of investigation and litigation, a federal district court has rejected the Justice Department's challenge to AT&T's $108 million acquisition of Time Warner Inc. Although the government could appeal, the merger is likely to close before the parties' June 21 termination date.

This "vertical" merger combines companies at different distribution levels. Time Warner is an entertainment company with rights to video content (CNN, TNT, TBS, HBO). AT&T is a distribution company, providing wireless, broadband, and pay-TV services to customers (including DIRECTV and U-Verse). This marked DOJ's first vertical merger trial in forty years and attracted substantial interest from the business community.