AT&T’s $85.4 billion acquisition of Time Warner has hit a snag.
CNN and Turner Broadcasting is a principal asset at Time Warner, which includes movie and television studios such as HBO, as well as publishing and music businesses. AT&T is hoping to use its acquisition of Time Warner to cement its position as a Hollywood powerhouse, diversifying itself away from offering just phone, wireless and pay-TV services.
AT&T and Time Warner would go to court to challenge the government’s legal basis for blocking the deal if these demands are formally made, the Times reported.
AT&T Chief Financial Officer John Stephens said this morning that it was unclear when the deal would close. The company had previously said the transaction would be completed by the end of the year, but last month it.
AT&T declined to comment further, and a Time Warner spokesman wasn’t immediately available for comment.
President Donald Trump has been a frequent critic of CNN, often calling its content “fake news” and arguing that the news channel presents him in an unfavorable light. During the presidential campaign last year, Trump said he would squash the deal if he were to become president.
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