M&A Judgement Day (Update)
Yesterday afternoon, in a legal ruling that should have surprised no one, AT&T finally received the green light to proceed with its $85B acquisition of Time Warner. In his ruling US District Court Judge Richard Leon called the Government’s anti-trust argument “gossamer thin”, and rebuked the DOJ for even bringing this case to the courts.
As I mentioned in my original post on Monday, the decision had much more riding on it than just the fortunes of two companies. Traditional US media and entertainment companies are entering an age of consolidation as they gear up to face new digital competitors like Netflix and Amazon. So they need the ability to merge in order to stay competitive. With the AT&T/Time Warner merger now approved, you can expect to see other deals happen like Comcast or Disney acquiring Fox, T-Mobile and Sprint merging together, and several other potential tech sector tie ups to come. Fasten your seat belts – it’s going to be a crazy ride!