>> A big win for AT&T on Tuesday, a US Court giving it a green light for its mammoth $85 billion purchase of Time Warner. The telecom giant's win is a big loss for the US Department of Justice which filled a law suit last year. The government was against the deal, claiming one company shouldn't control phone, broadband, Direct TV, satellite programming and Time Warner's TV, video, and movie content.
The ruling will surely reverberate beyond this one deal, says Reuters Liana Baker.>> Investors are now betting that there's gonna be a flurry of media consolidation. Fox shares were up after the decision, Discovery shares were also up. Even Sprint and T-Mobile, which are waiting for a decision of their own from the government, also saw their shares rise.
So it's clear there's gonna be a follow on trend of other deals.>> President Donald Trump has been a strong opponent of the deal first announced in October 2016. Specifically Trump has been intensely critical of news coverage by Time Warner's CNN.>> AT&T is buying Time Warner and thus CNN, a deal we will not approve in my administration.
Because it's too much concentration of power in the hands of too few.>> The merger is the fourth largest deal ever attempted in the global telecom media and entertainment space. For AT&T, it's about growth.>> From the beginning, AT&T has said that to better compete in this changing media environment.
To compete with Amazon and Netflix, they need to create better products, stickier products for customers. So by owning the content creators that will give them a chance to sort of make products that are more exciting for customers than just your mobile phone plan.>> While the Justice Department can still appeal the judge, in a scathing opinion, urged the US government not to seek a stay of his ruling.
Saying it would be, quote, manifestly unjust to do so and not likely to succeed. Time Warner shares rose more than 5% late Tuesday with the blockbuster deal moving one step closer to the finish line.