Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Time Warner    TWX

TIME WARNER (TWX)
Mes dernières consult.
Most popular
  Report  
Delayed Quote. Delayed  - 06/14 10:03:38 pm
98.77 USD   +0.84%
07:31aFox to craft script for M&A summer blockbuster
RE
06/19Forward to the future in AT&T–Time Warner decision
AQ
06/18AT&T : Time Warner Ruling
AQ
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets
OFFRE ETE Zonebourse : Jusqu'à 6 mois offerts sur tous les portefeuilles

Time Warner : Five Takeaways From Antitrust Case -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/13/2018 | 08:48am CEST

By Brent Kendall

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (June 13, 2018).

WASHINGTON -- A federal judge blessed AT&T Inc.'s takeover of Time Warner Inc. and soundly rejected the Justice Department's arguments to stop the blockbuster deal.

Judge Richard Leon said Tuesday that the Justice Department had failed to show how the merger would harm consumers and that the two companies should be allowed to proceed with their merger, without any conditions or divestitures.

Here are five takeaways from the ruling:

1. Uphill From the Start

There is a reason the government rarely challenges so-called vertical mergers like AT&T-Time Warner: The cases are hard to win. The deal will integrate complementary companies that don't compete head-to-head. In the typical merger lawsuit, the government objects to the marriage of direct rivals that battle one another on price and service. That dynamic was absent here.

Early on in the AT&T trial, the Justice Department appeared to be having difficulties persuading Judge Leon. Those appearances proved correct.

The AT&T trial was the first fully litigated vertical merger case in 40 years. The Justice Department over the years has harbored concerns that vertical deals could damp competition, but it has usually resolved those concerns by settling with the companies and placing restrictions on the merged firm. That happened, for example, when the Justice Department allowed Comcast Corp. to take control of NBCUniversal in 2011 and approved Ticketmaster's merger with Live Nation in 2010.

2. Clouds Lift for Deal Makers

Companies, as well as antitrust lawyers, have had a difficult time getting a read on antitrust enforcement under the Trump administration, and the Justice Department's AT&T lawsuit had left some potential merger partners on the sidelines until the dust cleared.

Now, all that could change. Comcast, for example, could make a bid soon to buy the bulk of 21st Century Fox, seeking to upend a deal with Walt Disney Co. Other companies may also feel liberated to move forward given the judge's sweeping decision in favor of AT&T.

3. Justice Department in a Pickle

The ruling breaks a long winning streak in merger cases for the department, which has succeeded in blocking an array of deals in recent years, including two major health-insurance mergers that it persuaded judges to block.

Other times, the department has doomed mergers without having to go to court, including when Comcast dropped its bid for Time Warner Cable in 2015 in the face of government objections.

The department's antitrust chief, Makan Delrahim, brought the AT&T case weeks after he was confirmed by the Senate. He surely would like to avoid a second loss on his résumé.

"We are disappointed with the Court's decision today," Mr. Delrahim said.

4. For AT&T, Now Comes the Hard Part

Now that AT&T has won its prize, it faces a new set of challenges, starting with integrating the two companies. The telecom giant and Time Warner have different corporate cultures and sets of expertise.

AT&T, meanwhile, has ambitious goals for the acquisition and its executives acknowledged in open court that some of their aims could be difficult to achieve. That includes AT&T's plans to compete with Google and Facebook Inc. for advertising dollars by creating a new platform that will allow the sale of targeted commercials to customers based on their viewing preferences and other personalized data.

AT&T said it expects to close its deal by June 20.

5. Judge Skeptical of Appeal

The Justice Department will have to decide almost immediately whether to appeal the ruling, and the antitrust division will have to consult with the U.S. Solicitor General's office before any appeal is filed. Officials said after the verdict that they would review the decision before deciding their next steps.

In a rare move, Judge Leon said the Justice Department shouldn't bother asking for an emergency court order staying the merger during appellate litigation. If the department can't win an emergency stay during appellate litigation, AT&T and Time Warner will be free to go ahead and close their deal.

Write to Brent Kendall at [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
AT&T 0.62% 32.39 Delayed Quote.-17.21%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TIME WARNER
07:31aFox to craft script for M&A summer blockbuster
RE
06/19Forward to the future in AT&T–Time Warner decision
AQ
06/18AT&T : Time Warner Ruling
AQ
06/18Glimpsing into the future after the AT&T-Time Warner trial
AQ
06/18TIME WARNER LLC : Termination of a Material Definitive Agreement, Completion of ..
AQ
06/18AT&T : offers its unlimited subscribers free access to a new app that streams Tu..
AQ
06/18TIME WARNER : LLC Announces Intent to Delist 1.95% Notes due 2023 from the NYSE
AQ
06/18Glimpsing into the future after the AT&T–Time Warner trial
AQ
06/18Another Opinion AT&T and the case for digital innovation
AQ
06/17AT&T-TIME WARNER IS GODZILLA V RODAN : citizens will get squashed
AQ
More news
News from SeekingAlpha
06/19Why I Am Acquiring More AT&T 
06/19Merger Arbitrage Mondays - June 18, 2018 
06/19Chinese Markets Leading Losses Globally, Declares 'Trade War' (Wall Street Br.. 
06/19WALL STREET BREAKFAST : China Labels It A 'Trade War' 
06/19Media mergers carry big debt risks 
Financials ($)
Sales 2018 32 701 M
EBIT 2018 8 812 M
Net income 2018 6 670 M
Debt 2018 -
Yield 2018 1,63%
P/E ratio 2018 -
P/E ratio 2019 12,13
Capi. / Sales 2018 2,36x
Capi. / Sales 2019 2,28x
Capitalization 77 270 M
Chart TIME WARNER
Duration : Period :
Time Warner Technical Analysis Chart | TWX | US8873173038 | 4-Traders
Technical analysis trends TIME WARNER
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 1
Average target price 103 $
Spread / Average Target 4,3%
EPS Revisions
Managers
NameTitle
Jeffrey L. Bewkes Chairman & Chief Executive Officer
Howard M. Averill Chief Financial Officer & Executive Vice President
Mitchell A. Klaif Chief Information Officer & Senior Vice President
Robert Charles Clark Lead Independent Director
Jessica P. Einhorn Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
TIME WARNER7.98%0
PERFECT WORLD CO LTD--.--%6 621
MADISON SQUARE GARDEN CO16.03%6 505
TOHO CO LTD-4.65%6 495
CHINA FILM CO LTD4.94%4 679
ZHEJIANG HUACE FILM AND TV CO LTD--.--%2 841