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

The Trump administration is filing a lawsuit to block AT&T's purchase of a Time Warner an $85 billion deal. Time Warner is the parent company of CNN a frequent target of President Trump's ire at the media

The Justice Department filed an antitrust lawsuit Monday to block AT&T's proposed acquisition of Time Warner Inc., a move officials said would harm American consumers by stifling innovation and potentially leading to higher prices. The company reiterated that vertical mergers of this type are routinely approved. AT&T and Time Warner are not direct competitors. Subsequent reports from Reuters and Politico confirmed the news. Rather, it bears the burden of proving to the U.S. District Court that the transaction violates the law. AT&T Chief Executive Officer Randall Stephenson countered those reports the next day, saying he'd never been under pressure from the DOJ to sell CNN.

"Our merger combines Time Warner's content and talent with AT&T's TV, wireless and broadband distribution platforms". The deal took an unexpected turn when President Donald Trump was elected after vowing to block the deal on the campaign trail while criticizing CNN, which is owned by Time Warner.

On Monday, AT&T's general counsel David McAtee called the DOJ lawsuit "a radical and inexplicable departure from decades of antitrust precedent". Donald Trump, a frequent critic of CNN, attacked the deal on the campaign trail a year ago, vowing that as president his Justice Department would block it.

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