AT&T, the telecoms giant that is based in the United States of America, has won its court case for its $85bn (£63.5bn) acquisition for Time Warner, without conditions, in a landmark ruling for the media and global entertainment industry.
The said decision will enable AT&T to compete with internet firms in the digital advertising space, giving it sufficient new sources of revenue.
The said deal is perceived to be a turning point by many of those in the media industry, as firms such as Google and Netflix continue to dominate the industry by producing their own content and selling it directly to the consumers at a cheaper price as compared to most premium TV subscriptions.
The said ruling is also anticipated to pave the way to success for the bid of Comcast for 21st Century Fox, which has already seen some contention during the recent weeks.
Once it is completed, the said merger will be the fourth biggest-ever that was attempted in the media and global telecoms space. According to data from Thomson Reuters, it will also be the 12th largest deal that was ever made.
Judge Richard Leon, the judge of the district court, said to the court: “I conclude that the government has failed to meet its burden of proof.” He labeled some of its arguments against the deal as “gossamer thin.”
The share price of AT&T remained approximately the same in post-market trading after the decision, while the share price of Time Warner rose by more than five percent.