U.S. District Court Judge Richard Leon ruled Tuesday that AT&T could buy Time Warner with no conditions attached, denying a Department of Justice antitrust challenge.
“TV content stocks [are] surging, post-close, on expectations of a merger wave that we see as sensible—but not without risk,” B. Riley analyst Barton Crockett said in a note to clients Wednesday.
Jefferies told clients the ruling may lead to more mergers moves because it raises the perception of a “more lenient regulatory environment” for acquisitions.
“M&A activity across the media and telecommunications landscape has largely been in a holding pattern awaiting the outcome of the T/TWX deal,” Jefferies analyst John Janedis said Tuesday. “With the deal approved we think it could spur other M&A activity for the group.”
Source: Tech CNBC
Media stocks soar after AT&T-Time Warner court decision raises value of all content properties