Government appeals big takeover

Article Excerpt

AT&T INC. $30 (New York symbol T; Income Portfolio, Utilities sector; Shares outstanding: 7.3 billion; Market cap: $219.0 billion; Price-to-sales ratio: 1.4; Dividend yield: 6.7%; TSINetwork Rating: Average; www.att.com) completed its $103 billion acquisition of media giant Time Warner (New York symbol TWX) in June 2018 after a judge ruled against an attempt by the U.S. Department of Justice to block it. The government is now appealing that ruling. The trial is set to begin on October 18, 2018. While it’s unlikely that AT&T will have to unwind the merger, a successful appeal for the Department of Justice could force the company to sell some of Time Warner’s cable channels. Alternatively, the appeals court could place limits on any increases in TV subscription fees. AT&T is still a buy. buy. …

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.