Is AT&T's Time Warner Deal in Jeopardy?
AT&T's (NYSE: T) planned $85 billion acquisition of Time Warner (NYSE: TWX) recently hit a speed bump after the US Justice Department sued to block the deal. The DOJ previously warned AT&T that it would likely need to divest Time Warner's Turner Broadcasting -- the parent company of CNN -- to win regulatory approval.
The DOJ is concerned that the combination of AT&T's wireless, home internet, and pay TV businesses with Time Warner's media assets would create an anti-competitive ecosystem that would limit consumer choices. It also believes that the merger could hurt online video competitors like Netflix (NASDAQ: NFLX).
Image source: AT&T.
Source: Fool.com
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