• 7 years ago
Will Justice Department’s Lawsuit Derail Deal-Making Boom?
Big companies still have reasons aplenty to pursue mergers
and acquisitions — not least, the rapid, technology-fueled transformations of many industries — and the possibility of government opposition is just one factor influencing their decisions.
“This event does not eliminate the need for transformational events or scale in these industries,”
said Aryeh Bourkoff, the founder of the investment bank LionTree and an adviser on media deals
We don’t know yet,” said Blair Effron, a co-founder of Centerview Partners, a boutique bank that has been an adviser on many deals this year.
The fundamental question is this: Is the lawsuit taking aim at one particular transaction, or is it a signal
that the White House is opposed to corporate consolidation in general?
But the Justice Department’s lawsuit on Monday to block the $85.4 billion AT&T-Time Warner deal could rapidly cool the deal-making climate.
The Trump administration’s lawsuit to block AT&T’s takeover of Time Warner not only threatens an enormous corporate deal.

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