WASHINGTON (Reuters) - The U.S. Justice Department said on Thursday it would appeal a federal judge’s approval of AT&T Inc’s (T.N) $85.4 billion acquisition of Time Warner, raising the prospect barely a month after the deal closed that it could be undone.
AT&T was sued by the Justice Department on antitrust grounds, saying that the deal would harm consumers, but U.S. District Judge Richard Leon last month approved the deal, allowing it to move forward following a lengthy trial. The merger, first announced in October 2016, was also opposed by President Donald Trump.
Leon ruled that the tie-up between AT&T’s wireless and satellite businesses with Time Warner’s movies and television shows was legal under antitrust law.
AT&T chief executive Randall Stephenson told reporters on Thursday at a conference in Sun Valley, Idaho, that the company was not surprised about the Justice Department’s decision to appeal.
“They have the right to appeal. Everyone has the right to appeal. We have a very fact-based thoughtful order. It will be evaluated on those grounds,” he said.
A Justice Department spokesman declined to comment.
The Justice Department opted in June not to seek an immediate stay of the court’s approval of the merger, allowing the deal to close on June 14. However, the Justice Department still had 60 days to appeal the decision approving the merger. The government’s notice of appeal filed in U.S. District Court in Washington did not disclose on what grounds it intends to challenge the approval.
Leon had sharply urged the Justice Department not to seek a stay of his ruling, saying that it would be
