Tuesday is D-Day for blockbuster media deals. Judge Richard Leon's ruling on the Department of Justice lawsuit to block AT&T Inc.'s (T) - Get Report purchase of Time Warner Inc. (TWX) will be an antitrust landmark. Much more than the sale of Time Warner for $85.4 billion, or $108.7 billion including debt, is in the balance, however. Leon's order will likely determine whether Comcast Corp. (CMCSA) - Get Report starts a bidding war with Walt Disney Co. (DIS) - Get Report for Twenty-First Century Fox Inc. (FOXA) - Get Report Depending on the ruling, a Comcast bid for Fox could come as early as Wednesday, wrote Rich Greenfield, a BTIG LLC analyst, in a recent report "We expect a Comcast bid for Fox under almost any circumstance, unless there is problematic language in the AT&T Time Warner court decision that makes the prospect of vertical media mergers untenable going forward," Greenfield wrote. Editor's note: The full version of this article was published by The Deal, a sister publication of TheStreet that offers sophisticated insight and analysis on all types of deals, from inception to integration. Click here for a free trial. Jim Cramer and the AAP team hold a position in Comcast for their Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells CMCSA? Learn more now. 4 Top Experts Tell You How to Play the Market. TheStreet's Scott Gamm recent sat down with top market watchers from Bank of America, Fisher Investments, Invesco and Wells Fargo. Click here and register to watch a free roundtable in which they lay out their best advice.<doc-sep>AT&T yesterday completed its acquisition of Time Warner Inc., two days after a federal judge ruled against a Department of Justice (DOJ) attempt to block the deal. The DOJ could still appeal the ruling, but it agreed not to seek a stay pending appeal, allowing the merger to be completed. You can expect more personalized advertisements as AT&T combines a major programmer with its DirecTV, home broadband, and mobile services. By adding Warner Bros., HBO, and Turner to AT&T's TV and broadband services, the combined company will "bring a fresh approach to how the media and entertainment industry works for consumers, content creators, distributors and advertisers," AT&T CEO Randall Stephenson said in the merger completion announcement. AT&T will "offer customers a differentiated, high-quality, mobile-first entertainment experience," he said. “Firewall” between Time Warner and AT&T Communications The DOJ's agreement not to seek a stay came after AT&T said it would maintain some separation between its old and new business units. Turner networks will be part of a separate business unit, which is distinct from the AT&T Communications division that operates DirecTV, U-verse, and the company's home and mobile broadband businesses. "AT&T Communications will have no role in setting Turner's prices or other terms to unaffiliated distributors, and Turner will not consult with AT&T Communications in setting Turner prices or other terms for programming provided to unaffiliated video distributors," AT&T said in a letter to the DOJ yesterday. AT&T also said that it "will implement a firewall between Turner and AT&T Communications to prevent the transmission or exchange, either directly or indirectly, of competitively sensitive information of unaffiliated programmers or distributors." Advertisement That separation won't prevent AT&T from using customer data gleaned from its broadband and TV services to sell more targeted ads, though. Internet users would have to opt out of targeted ads, because last year Congress prevented implementation of privacy rules that would have required home Internet and mobile broadband providers to get consumers' opt-in consent before using their Web browsing histories for advertising. AT&T said it will have an advertising and analytics division that "provides marketers with advanced advertising solutions using valuable customer insights from AT&T's TV, mobile and broadband services, combined with extensive ad inventory from Turner and AT&T's pay-TV services," AT&T said in the merger completion announcement. Time Warner will become "AT&T's media business" and be given a new name, AT&T said. AT&T could come up with new ways of packaging Time Warner content. Last year, Stephenson suggested that hourlong Game of Thrones episodes could be cut into 20-minute episodes for people watching on mobile devices. AT&T, Verizon, Comcast expand into new businesses AT&T buying Time Warner continues a trend of broadband and pay-TV providers getting deeper into the programming and advertising industries. Verizon purchased AOL in 2015 and Yahoo in 2017, for example. Comcast, which purchased NBCUniversal in 2011, is now attempting to buy major portions of 21st Century Fox. Comcast made its offer for Fox the day after AT&T's court victory, saying that it is now "highly confident that our proposed transaction will obtain all necessary regulatory approvals in a timely manner." The DOJ's lawsuit against the AT&T/Time Warner merger raised concerns about TV and broadband network operators controlling both distribution and content. As the owner of Time Warner programming, AT&T could raise prices on its rivals and hinder development of online streaming services that compete against cable and satellite TV, the DOJ argued. But the government failed to prove that the merger would substantially lessen competition or that AT&T would use its ownership of premium content to harm rival TV providers, US District Judge Richard Leon's ruling said. AT&T had argued that it has no intention of limiting distribution of Time Warner programming.<doc-sep>
AT&T announced Thursday evening that it has completed its merger with Time Warner Inc., consummating a deal that was announced 20 months ago. The final obstacle to the transaction was cleared earlier in the day, as the Department of Justice announced it would not seek to stay U.S. District Judge Richard Leon’s ruling approving the merger. In a memo Thursday evening, AT&T CEO Randall Stephenson welcomed Time Warner staff into the fold and pledged to provide the resources to support the company’s creativity. “As different as our businesses are, I think you’ll find we have a lot in common,” Stephenson said. “Like you, we take immense pride in what we do. And we have a passion for always doing the right thing and supporting our communities. We’re big fans of your talent and creativity. And you have my word that you will continue to have the creative freedom and resources to keep doing what you do best.” In a separate statement, Stephenson said that combining the creative talents of Warner Bros. HBO and Turner with the direct-to-consumer relationships of AT&T would be a boon to consumers. “We’re going to bring a fresh approach to how the media and entertainment industry works for consumers, content creators, distributors and advertisers,” he said. On Tuesday, Judge Leon flatly rejected the DOJ’s arguments that the merger would stifle competition and result in higher prices for consumers. In a 172-page opinion, Leon heavily emphasized the threats to traditional media companies posed by streaming providers. Federal prosecutors have yet to announce whether they will appeal the ruling, but Leon made it clear in his conclusion that he would not grant a stay pending appeal.