Summary
Back in June, District Court Judge Richard Leon approved and allowed the AT&T merger of Time Warner to go ahead without conditions.
We waited several weeks before opining on what investors needed to watch for in AT&T inclusive of the new WarnerMedia division.
The move reeks of desperation with a hint of "sore loser" trauma from the federal government, but an appeals process is enough to keep the stock on sale.
This idea was discussed in more depth with members of my private investing community, BAD BEAT Investing.
As we know, on June 12th the U.S. District Court approved AT&T's (T) merger with Time Warner (TWX) and did so without any conditions such as the sale of assets or the consolidation of services. Of course, following any such decision of a higher court, either party is allowed to appeal the decision. Following the decision, the Justice Department had contemplated trying to get an injunction to block the deal. The District Court judge said he would deny a stay on the deal if requested by the Justice Department, meaning that even if the Justice Department did appeal, the companies were free to close the deal. Once AT&T moved Time Warner assets into its own WarnerMedia division, things seemed to be smooth sailing.
