Appeals court rejects government bid to reverse AT&T/Time Warner deal

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A federal appeals court has upheld AT&T's acquisition of Time Warner, dealing a blow to Trump administration lawyers who had tried to stop the deal.
The Trump administration sued to stop the deal back in 2017, arguing that having AT&T as a corporate parent would give Time Warner too much leverage in negotiations with other cable and satellite network providers. A trial judge, Richard Leon, rejected that argument last June, allowing the deal to officially close a few days later. Now his ruling has been upheld by the DC Circuit Appeals Court.
Media conglomerates like Time Warner engage in periodic negotiations with distributors like Comcast and AT&T. In these negotiations, each party threatens to end their relationship if they don't get favorable financial terms. But each party also has an incentive not to take too hard a line because failing to reach an agreement could mean a content blackout that's expensive for both sides.
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