Irrational exuberance

13 June 2018 By Gina Chon Follow @GinaChon

The U.S. Justice Dept gambled when it sued to block the $85 bln Time Warner sale. Its failure means business as usual for vertical mergers, like Comcast’s likely bid for Fox. Big firms that directly compete will still face tough scrutiny – and prosecutors eager for a clear win.

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U.S. District Court Judge Richard Leon on June 12 ruled in favor of mobile-telecoms operator AT&T in its $85 billion bid to buy media group Time Warner.

The approval had no conditions and Leon urged the U.S. government, which had sued to block the deal, to not to seek a stay of the ruling as it considered whether to appeal. The Justice Department is considering its next steps.

The DOJ had sued AT&T to block the deal on Nov. 20, arguing it would harm consumers. AT&T agreed to buy Time Warner, the owner of HBO, the Warner Bros studio and news network CNN, on Oct. 22, 2016.

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