Legal Challenges Arise In Major Business Merger Proposal

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Thursday, November 30, 2017.

Things are heating up regarding the proposed contract between communications mogul AT&T and Time Warner. The Justice Department reportedly filed a lawsuit to halt the projected $85.4 billion business merger bid. The Justice Department's lawsuit is apparently focused on trust issues. California business owners may want to pay close attention to this story as it unfolds.

AT&T is already one of the largest telephone and internet providers in existence. In 2015, it acquired DirecTV as well, making it one of the largest television distributors in the nation. Should AT&T and Time Warner enter a business merger, the new company's ability to reach consumers for entertainment and other communication programs would likely be unrivaled.

A Justice Department antitrust regulator stated that such a merger would harm consumers and would also weaken other companies' abilities to compete. He also said consumers could expect higher monthly bills and less options for their viewing pleasures. An AT&T spokesperson said the lawsuit is illogical and the proposed deal will be aggressively defended in court.

One Justice Department official said the agency is not opposed to negotiations. However, he also said the only way to gain antitrust favor would be to sell assets. In situations like this, many California business owners turn to experienced business and commercial law attorneys to act on their behalves in negotiations and any litigation deemed necessary in the hope of achieving their merger and acquisition goals. Having an attorney by one's side to argue against opposing forces in court typically increases the chances of obtaining a positive outcome.

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