Stories

Feds will sue to block AT&T from buying Time Warner

Illustration: Rebecca Zisser / Axios

The U.S. Department of Justice is suing to prevent AT&T from completing its proposed $85 billion takeover of Time Warner, throwing the telecom giant's bet on becoming a media powerhouse in jeopardy. "Our investigation showed this is an illegal merger that would harm consumers," a DOJ official told reporters.

Why it matters: Antitrust regulators do not usually oppose so-called "vertical" mergers like this one, in which one company is buying another against which it doesn't really complete. But it is unclear if the change is philosophical, or related to President Trump's campaign statements against the deal and his subsequent criticism of Time Warner property CNN.