The deal was first announced in October 2016, but it was delayed after the US Justice Department intervened to stop the acquisition, suggesting that the massive deal would harm consumers. Fortunately this week, the court came out with a decision in favor of AT&T, allowing the deal to close without any conditions, according to TechCrunch.
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As mentioned earlier by TechCrunch, the US Justice Department may still appeal the court’s decision. However, the Justice Department has declined to seek a legal stay that would have blocked the acquisition from going into effect.
About the massive deal
The $85.4 billion deal will combine together global media and entertainment properties HBO, Turner channels, Warner Brothers with AT&T’s formidable technology resources, which include its video, mobile and broadband internet service.
Under the terms of the transaction, Time Warner’s shareholders will receive 1.4 shares of AT&T common stock, in addition to $53.75 in cash. As part of the deal, former Time Warner Chairman and CEO Jeff Bewkes will remain with the company as a senior advisor during the long transition period.
The monstrous deal is reportedly crucial for AT&T. The US tech giant is expected to save over $2.5 billion synergies and provides AT&T a significant revenue growth within four years. More importantly, the deal is set to create the best communication and entertainment experiences in the market. This was the first time the US court has decided over a vertical merger, a term used to describe the union of two different companies.
The deal has also opened the floodgate for other megadeals. This week, US telecommunication giant Comcast launched a massive $65 billion takeover for Fox, setting the stage for a fierce bidding war with rival Disney, which announced a massive $52.4 billion bid for Fox last year.
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