WASHINGTON (Reuters) – AT & T Inc. defeated Tuesday's tug-of-war attempts by the Trump administration to block the $ 85.4 billion purchase of Time Warner by the US Department of Justice said it would not fight a decision by the Court of Appeal to approve the deal.
The takeover had been closely watched in political circles after US President Donald Trump came under fire, who spoke out against helping Time Warner's CNN unit, which he accused of sending "false news".
The Three Judges Panel for the US Court of Appeals for the District of Columbia unanimously supported Tuesday declaring that the government's case that the merger would lead to higher consumer prices was "uninteresting." Monthly efforts by the Ministry of Justice to block the deal.
It was AT & T's second big win against the Department of Justice, with Mobile Number 2 integrating its WarnerMedia division and its new Xandr advertising unit.
"We are grateful that the Court of Appeals has examined our objections to the opinion of the district court. The department does not intend to seek further reviews, "Justice Department spokesman Jeremy Edwards said in a statement.
Makan Delrahim, head of the Department of Justice's cartel department, called Paul Cappuccio, AT & T's General Counsel, David McAtee, and Time Warner's former General Counsel, Paul Cappuccio, to congratulate them on the court raffle.
McAtee said the merger has "already brought significant benefits to consumers and will continue to do so in the years to come."
The deal was seen as a turning point for a media industry that was revalued by companies such as Netflix Inc and Alphabet Inc's Google, which put content online without the need for a cable subscription.
The merger, announced in October 201
AT & T agreed to separately administer the Turner Network until 28 February or until the Ministry of Justice completes an appeal. AT & T also agreed that it would not play a role in determining Turner's prices for dealers, and the number of Turner employees would remain largely unchanged.
The appeals court hit Leon, who had left a devastating assessment in his assessment of the government's attempt to end the deal.
"Undoubtedly, the district court has made some problematic statements that the government finds and that court can not ignore," the panel said in its statement.
Gigi's son, who worked for the Federal Communications Commission during the Obama administration, said the ruling has shown that antitrust law needs to be reformed so that the government can end problematic deals.
"AT & T favors Time Warner and DirecTV content over its broadband services through its DirecTV Now and Watch services," she said. "Consumers are the losers."
The AT & T share closed Tuesday at 0.3 percent at $ 31.22.
coverage by Diane Bartz and David Shepardson; additional coverage by Sheila Dang and Helen Coster; Editing by Chizu Nomiyama, Meredith Mazzilli and Leslie Adler