DOJ Tells AT&T to Sell CNN or Else No Merger with Time Warner

AT&T Faces Long Legal Battle if it Wants to Merge with Time Warner and Keep CNN

The Department of Justice has told AT&T that if it wants to merge with Time Warner, it must first sell either CNN or Direct TV.  AT&T has fired back that it has no intention of selling CNN, and ‘experts’ suggest that a legal battle is sure to ensue, challenging DOJ’s right to prevent the merger in the first place.

SPONSOR

If you like this content, be sure you click here and support iState's ability to deliver to you news for the iStater, the state of one.

From Arts Technica

The Trump administration is asking AT&T and Time Warner Inc. to sell off either CNN or DirecTV in order to win government approval of their merger, multiple news outlets reported today.

AT&T has owned DirecTV since 2015 and is now seeking federal approval to purchase Time Warner Inc., the owner of programming such as HBO, CNN, and Warner Bros.

AT&T could gain approval for the deal by having Time Warner sell Turner Broadcasting, the division that includes CNN, according to reports today by The New York Times and CNBC.

But a merged AT&T/Time Warner reportedly could keep CNN if it’s willing to sell DirecTV instead. CNBC said it has “confirmed the Justice Department has asked AT&T to sell Turner Broadcasting, which includes CNN, or sell DirecTV for merger approval.”

The government’s stance could lead to a legal battle. “If the Justice Department formally makes either demand a requisite for approval, AT&T and Time Warner would almost certainly take the matter to court to challenge the government’s legal basis for blocking their deal,” The New York Times wrote.

Until today, AT&T expressed confidence that it would wrap up the acquisition by the end of this year. But today, AT&T CFO John Stephens said that “the timing of the closing of the deal is now uncertain.”

AT&T said it will not sell CNN. “Until now, we’ve never commented on our discussions with the DOJ,” AT&T CEO Randall Stephenson said in a statement provided to Ars. “But given DOJ’s statement this afternoon, it’s important to set the record straight. Throughout this process, I have never offered to sell CNN and have no intention of doing so.”

Read More

Facebook Comments
About Paul Gordon 1368 Articles

Paul Gordon is the publisher and editor of iState.TV. He has published and edited newspapers, poetry magazines and online weekly magazines.
He is the director of Social Cognito, an SEO/Web Marketing Company. You can reach Paul at pg@istate.tv

1 Trackback / Pingback

  1. iWire Daily - Thursday, November 9th, 2017

Comments are closed.