AT&T’s Victory Is a Big Setback for Merger Enforcement

  • Judge’s ruling expected to spur merger wave across industries
  • Comcast said poised to top Disney bid for Fox assets Wednesday
The ruling "opens the floodgates" for more deals, says Liberum’s Ian Whittaker.Source: Bloomberg
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AT&T Inc.’s sweeping court victory allowing its takeover of Time Warner Inc. delivers a sharp setback to the Justice Department’s new approach to policing mergers under President Donald Trump and promises to spark a merger wave across industries.

The federal judge’s decision raises the bar for the government’s ability to challenge deals between companies that don’t compete directly. That opens a pathway for firms contemplating such deals, especially in media where distributors are racing to acquire content companies.