AT&T would win court docket struggle with DOJ over Time Warner deal: Analyst –

AT&T would win court docket struggle with DOJ over Time Warner deal: Analyst


Randall Stephenson, Chairman and CEO of AT&T

Saul Loeb | AFP | Getty Images

Randall Stephenson, Chairman and CEO of AT&T

Gallant in contrast the saber-rattling over the Turner properties to President Donald Trump’s earlier risk to drag the broadcasting license of CNBC-parent NBC over what he deemed as unfair information protection.

Trump has a notoriously contentious relationship with CNN, which he typically takes to process for “fake news.”

“We think AT&T’s merger approval chances would be further improved if there’s meaningful criticism in the coming days of Trump possibly using antitrust law to target CNN, and either the president or DOJ decide a court challenge isn’t worth it, especially with DOJ likely to lose the court case,” Gallant wrote.

The deal is valued at $85 billion and had been anticipated to shut by the top of the yr. Sources have informed NBC News that AT&T beforehand had supplied to unload CNN, however was informed that will not be sufficient.

The DOJ stated it doesn’t touch upon ongoing issues and has declined touch upon the AT&T-Time Warner deal as effectively.

“The Department is committed to carrying out its duties in accordance with the laws and the facts,” it stated in badertion. “Beyond that, the Department does not comment on any pending investigation.”

AT&T and Time Warner declined to remark.

While seeing the division’s case as weak, Gallant stated the potential for a court docket battle may prolong the timeline for closing.

“While we view the DoJ’s position as at least partially politically motivated, they do have the power to at least elongate the acquisition process,” he stated. “Deal risk has clearly gone up.”

WATCH: CNBC’s Andrew Ross Sorkin talks about Trump’s “fake news” battle:

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