Justice Department Sues To Block AT&T's Merger With Time Warner

Justice Department Sues To Block AT&T's Merger With Time Warner

Justice Department Sues To Block AT&T's Merger With Time Warner

The U.S. Department of Justice will sue to block the long-awaited merger between AT&T Inc (NYSE: T) and Time Warner Inc (NYSE: TWX), Reuters reported Monday afternoon.

Makan Delrahim, the office's best antitrust controller, said the Justice Department contradicted the arrangement since it would make an interchanges and media behemoth unrivaled in its capacity to achieve most American homes with remote and satellite TV administrations and important programming, for example, CNN and HBO, the home to "Round of Thrones".

The news of the antitrust lawsuit follows a contentious period that included reports that the DOJ demanded AT&T and Time Warner sell Turner Broadcasting, the group of channels that includes CNN, in order to receive approval for the deal. AT&T and Time Warner are not direct competitors.

"AT&T/DirecTV would hinder its rivals by forcing them to pay hundreds of millions of dollars more per year for Time Warner's networks, and it would use its increased power to slow the industry's transition to new and exciting video distribution models that provide greater choice for consumers".


The Justice Department's lawsuit cited internal Time Warner documents that said long-term contracts to host live sporting events like college basketball and baseball would help allow it to achieve "targeted rate increases".

Monday's announcement comes two weeks after a controversy erupted publicly over whether AT&T would have to sell off CNN to sidestep government concerns about the company's plan to buy Time Warner. The officials said they flatly rejected the offer.

"The relief we're seeking today would CNN exactly where it is right now", the official said.

Related news