The US Court of Appeals for the DC Circuit could rule Tuesday, February 26, on the government’s last-ditch attempt at undoing AT&T’s merger with media firm Time Warner, reported Bloomberg.
The Department of Justice appealed a court ruling that allowed AT&T’s purchase of Time Warner to proceed. AT&T closed the acquisition on June 15, though WarnerMedia continues to operate separately. Under an agreement with the Justice Department, AT&T promised to put Time Warner’s Turner Broadcasting in a business unit separate from AT&T’s DirecTV business. It also agreed to a firewall between the two. That agreement, which was intended to prevent a full integration of the companies if the government prevails in its appeal, expires Thursday.
Because the appeals court issues its opinions on Tuesday and Friday mornings, it would have to rule Tuesday on the Justice Department’s appeal before AT&T can end the separation agreement and proceed with the integration.
The decision could have far-reaching consequences for both sides, reported Bloomberg. If the court ules for the Justice Department and sends the case back to Judge Richard Leon for reconsideration, it would cast a cloud over a deal AT&T says it needs to compete against rivals such as Netflix and Amazon.com.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
