Justice Dept. to sue to stop AT&T’s $85B Time Warner deal

NEW YORK (AP) The Justice Department intends to sue AT&T to stop its $85 billion purchase of Time Warner, according to a person familiar with the matter who was not authorized to discuss the matter ahead of the suit’s official filing.

That sets the stage for a legal battle with AT&T. The telecom giant’s CEO Randall Stephenson said earlier this month that he would not sell “key franchises” of Time Warner to get the deal done.

MORE: AT&T buying HBO and CNN owner Time Warner for $85.4 billion

The government’s objections to the deal have surprised many on Wall Street. AT&T and Time Warner are not direct competitors. Mergers between such companies have typically had an easier time winning government approval.

MORE: Video: Hialeah man shoots 2 AT&T trucks in driveway

Author: Associated Press
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