AT&T Ramps Up Preparations to Fight With U.S.

Over Time Warner - Bloomberg

Bloomberg the Company & Its Products Bloomberg Anywhere Login Bloomberg Terminal Demo Request

Bloomberg 5 Settings
Subscribe s

AT&T Ramps Up Preparations to Fight With

U.S. Over Time Warner Photographer: Andrew Harrer/Bloomberg

By Scott Moritz and Gerry Smith

November 08, 2017 10:28 AM

If approval requires sale of assets, case could head to court

AT&T said unwilling to part with CNN, HBO, TNT, WB studio

AT&T Inc. is ramping up preparations to fght the U.S. Justice Department in court if the agency
sues to block the $85.4 billion acquisition of Time Warner Inc., according to people familiar
with the matter.

AT&T is instructing its legal team to prepare for a possible court battle on growing concerns that
antitrust division chief Makan Delrahim wants the telecommunications giant to divest assets,

https://www.bloomberg.com/news/articles/2017-11-08/at-t-is-said-to-prepare-for-fight-with-u-s-over-time-warner[11/8/2017 11:07:43 AM]

AT&T Ramps Up Preparations to Fight With U.S. Over Time Warner - Bloomberg

said the people, who asked not to be identifed discussing private information. The timing of the

deal, originally expected to close by the end of the year, is now uncertain, AT&T Chief Financial
Offcer John Stephens said Wednesday.

AT&Ts merger agreement with Time Warner says the companies will pursue the deal until
theres no way to appeal an order blocking the transaction. AT&T shares were little changed at
$33.08 at 1:12 p.m. in New York, while Time Warner fell 4.2 percent to $90.71, compared with
the $107.50 offer price.

Delrahim took over the review of the deal in September after he was confrmed by Congress,
slowing down the process as he got up to speed, people familiar with the matter said last week.
Hes looking for ways to remedy the competitive issues posed by the combination of AT&Ts vast
communications network and Time Warners media empire.

Delrahim took over the review after months of investigation by the staff attorneys and
economists at the antitrust division. While negotiations with the companies have focused on
conduct remedies, Delrahim may seek asset sales to address competitive harm, according to one
of the people.

But its not clear if AT&T would be willing to part

with anything its acquiring from Time Warner. The company has said it considers CNN, the
news network that has been a lightning rod for President Donald Trump, a prize asset, and the

https://www.bloomberg.com/news/articles/2017-11-08/at-t-is-said-to-prepare-for-fight-with-u-s-over-time-warner[11/8/2017 11:07:43 AM]

AT&T Ramps Up Preparations to Fight With U.S. Over Time Warner - Bloomberg

company also considers properties such as the Warner Bros. studio, HBO, TNT and TBS
essential, people familiar with the matter said. AT&T Chief Executive Offcer Randall
Stephenson wants to pair all the programming those divisions produce with advertising and
other services to create new sources of revenue.

With assistance by David McLaughlin

Before it's here, it's on the Bloomberg Terminal.

LEARN MORE

Have a confdential news tip?

Get in touch with our reporters.

From The Web Sponsored Linksby Taboola

Reclusive Millionaire How To Fix Your Fatigue Escondido, California:

Warns Americans: "Get (Do This Every Day) This Brilliant Company Is
Stansberry Research GundryMD EverQuote Insurance Quotes

This Amazon upgrade is That Moment The Single in Escondido? See

even better than Prime Cameras Kept Filming On Whos on Match
Honey App Your Daily Dish Match.com

Terms of Service Trademarks Privacy Policy Careers Made in NYC Advertise Ad Choices
2017 Bloomberg L.P. All Rights Reserved Website Feedback Help

https://www.bloomberg.com/news/articles/2017-11-08/at-t-is-said-to-prepare-for-fight-with-u-s-over-time-warner[11/8/2017 11:07:43 AM]