AT&T wins court approval to take over Time Warner with a trademark $85 billion bid despite the Trump prior dissent due to antitrust concerns.

Chanel Holden

2018-06-07 10:36:00 Thu ET

AT&T wins court approval to take over Time Warner with a trademark $85 billion bid despite the Trump administration prior dissent due to antitrust concerns. This court approval involves no additional conditions on the prospective mega merger between AT&T and Time Warner. As a consequence, Time Warner's share price has surged by 5% since this unconditional court approval, whereas, AT&T's share price shows less volatile gyrations.

Both companies hope to better compete with Netflix, Amazon, Comcast, DirecTV and other online video content providers. Prior antitrust critics suggest that the joint company might lead to anti-competitive issues with greater market concentration. This mega merger might result in higher oligopolistic markups to the detriment of U.S. consumers, this probable merger remains open to controversy.

A powerful combination of Trump tax cuts, low capital costs, robust corporate net gains, and balance sheet capital improvements drive the current appetite for new mergers and acquisitions. In the first half of the current fiscal year, we witness $978 M&A deals at a pivotal point in real business cycles with both full employment and low inflation. As many unicorns package themselves as potential M&A targets for tech titans, the current M&A wave boosts the aggregate demand for high-skill R&D patents and tech talents. During the Trump economic boom, the current M&A wave seems to start with telecom-and-media mergers.

Comcast may next target acquiring Fox in America or Sky in Europe, and T-Mobile and Sprint may form a $150 billion company to better compete with the top wireless communication rivals Verizon and AT&T. These mega M&A deals can spill over to other industries such as big banks, technology titans, and pharmaceutical giants.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More
The financial crisis of 2008-2009 affects many millennials as they bear the primary costs of college tuition, residential demand, health care, and childcare.
Peter Prince

2019-06-23 08:30:00 Sunday ET

The financial crisis of 2008-2009 affects many millennials as they bear the primary costs of college tuition, residential demand, health care, and childcare.

The financial crisis of 2008-2009 affects many millennials as they bear the primary costs of college tuition, residential demand, health care, and childcare

+See More
Foreign majority owners offer Sprint and T-Mobile to stop using HuaWei critical technologies after the U.S. telecom merger.
Daphne Basel

2018-12-20 13:40:00 Thursday ET

Foreign majority owners offer Sprint and T-Mobile to stop using HuaWei critical technologies after the U.S. telecom merger.

T-Mobile and Sprint indicate that the U.S. is likely to approve their merger plan as they take the offer from foreign owners to stop using HuaWei telecom te

+See More
Modern themes and insights in behavioral finance (Part 2)
Chanel Holden

2022-02-15 14:41:00 Tuesday ET

Modern themes and insights in behavioral finance (Part 2)

Modern themes and insights in behavioral finance   Lee, C.M., Shleifer, A., and Thaler, R.H. (1990). Anomalies: closed-end mutual funds. Journal

+See More
President Trump nominates Jerome Powell to be the new Federal Reserve chairman.
Fiona Sydney

2017-10-03 18:39:00 Tuesday ET

President Trump nominates Jerome Powell to be the new Federal Reserve chairman.

President Trump has nominated Jerome Powell to run the Federal Reserve once Fed Chair Janet Yellen's current term expires in February 2018. Trump's

+See More
Agile lean enterprises break down organizational silos to promote smart collaboration for better profitability and customer loyalty.
Laura Hermes

2020-11-03 08:30:00 Tuesday ET

Agile lean enterprises break down organizational silos to promote smart collaboration for better profitability and customer loyalty.

Agile lean enterprises break down organizational silos to promote smart collaboration for better profitability and customer loyalty. Heidi Gardner (2017

+See More
Investing in stocks is the best way for people to become self-made millionaires.
James Campbell

2019-06-25 10:34:00 Tuesday ET

Investing in stocks is the best way for people to become self-made millionaires.

Investing in stocks is the best way for people to become self-made millionaires. A recent Gallup poll indicates that only 37% of young Americans below the a

+See More