AT&T-Time Warner Merger: Insiders Await Judge’s Ruling With Nervous Anticipation After Long Period of Limbo

Variety | 6/12/2018 | Cynthia Littleton
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Long-serving Time Warner employees were euphoric in October 2016 when AT&T clinched its $85.4 billion acquisition agreement with Time Warner. It took 15-plus years, but finally a deal came along that promised to help undo some of the damage done to retirement accounts and personal stock portfolios by the disastrous Time Warner-AOL merger, which was completed in early 2001.

But that excitement turned to anxiety and aggravation during the past year as the completion of the deal became bogged down in the regulatory approval process. The fate of the company that was once an industry leviathan could be settled today by U.S. District Court Judge Richard Leon. Leon is expected to issue his ruling, following a six-week bench trial, around 4 p.m. ET today in his Washington, D.C. courtroom.

Employees - Windfall - End - Time - Warner

Employees who were hoping to see a windfall by the end of 2017 from their Time Warner stock holdings have been in limbo for more than six months. Once the government decided to sue to block the merger on anti-trust grounds, there was no more certainty of mid-level executives reaping rewards from the value of stock options in a buyout. Instead, many have been nervous about their fate amid the transition to a new owner.

Can Justice Department De-FAANG AT&T and Time Warner's Merger Argument?

Months - Level - Worry - Whispers - Time

In the past few months, a new level of worry has cropped up as whispers have increased that Time Warner may seek to renegotiate the terms of the deal, even if Leon’s verdict goes in favor of AT&T. So much time has passed since the initial deal was struck that Time Warner’s board may have an obligation to push AT&T to raise its offer, in light of the hot M&A market for blue-chip media and content brands. What’s more, Time Warner has delivered strong earnings during the past few quarters,...
(Excerpt) Read more at: Variety
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I find it extremely funny when people keep voting and expecting the government to change!
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