The U.S Department of Justice has submitted an antitrust lawsuit against AT&T to block the major communications company from purchasing Time Warner. The Time Warner has been considered one of the biggest entertainment companies in the world. A statement issued by AT&T calling the move as an agitator and bizarre departure since decades of antitrust criterion. The company said that they were confident that the court will reject the claim of the U.S government and allow this merger under longstanding legal model. The deal was made public just one year ago and it is understandable that how the deal could be harmful for both consumers and rival service providers. Point to be noted that Time Warner owns hugely important entertainment properties like HBO, Warner Bros., the Turner Broadcasting System set of channels, and AT&T.
The company also indicated that this merger will provide a great benefit from having all that content in-house. It will provide AT&T with its own attractive entertainment division to match in a lot of ways and what Comcast did when it purchased the majority of NBC in the year 2011. Now, the antitrust lawsuit doesn’t come as a huge surprise due to various rumors of the suit circulating for the past several weeks. There have been indications that AT&T is looking to sell off significant assets to calm the (DOJ) U.S Department of Justice and get the deal to be happened. But, the CEO of AT&T Randall Stephenson said disproved that the DOJ made any such request. It is important that some extraordinary factors will play a significant role into this lawsuit and the sale of potential assets.