Time Warner shares are down $2.69 to $92 and trade below the current value of the deal which is just above $101, reflecting $53.75 in cash and about $47.40 in AT&T stock per Time Warner share with AT&T down seven cents today at $33.
AT&T had previously maintained that the deal would be done by the end of the year.
The government is holding up AT&T's pending acquisition of Time Warner, stirring speculation that the Trump administration is trying to retaliate against CNN for its coverage of the president. Shortly after the first one, Mr. Trump lashed out at CNN on Twitter, saying of the news network that "their credibility will soon be gone!" If the DOJ makes either demand official, AT&T and Time Warner would nearly certainly take the matter to court, the Times said. "But given DOJ's statement this afternoon, it's important to set the record straight". Are the invisible hands of Donald Trump pulling the strings regarding the CNN divestiture? Stephens' comments effectively confirmed last week's Wall Street Journal report that the government is "actively considering" an antitrust lawsuit to block the impending acquisition.
"Citing 'three people with direct knowledge of the negotiations", the Financial Times reported on Wednesday that Time Warner must sell the cable news channel before the the United States antitrust authority signs off on the deal.
Makan Delrahim, who heads the Justice Department's antitrust department, may have changed his view of AT&T's purchase, Reuters reported. I can't comment on those discussions, " AT&T Inc. Mr. Trump's Justice Department will decide whether to approve the merger, and while analysts say there is little to stop the deal from moving forward, the president's animus toward CNN remains a wild card.
Scottish Parliament evacuated after three suspicious packages found
The "suspicious package" which led to Scottish Parliament being evacuated has been confirmed to be event invitations to Tory MSPs. The MSP building in Holyrood , Edinburgh , has been cleared following the incident.
AT&T hopes to benefit from marrying all of Time Warner's assets to its own.
Diana Moss, president of the American Antitrust Institute, told The New York Times that the "DOJ would have to show that a combined entity has the incentive as a vertically integrated company to foreclose rival content producers and/or rival distributors from access to content".
The Justice Department's new demand is likely to complicate its continuing antitrust conversations with AT&T, which said on Wednesday it was now uncertain when the deal, announced in October 2016, would be completed. But another person said the idea came from the Department of Justice. "Beyond that, the Department does not comment on any pending investigation". Several Democratic lawmakers have also pushed back against the combination.
As part of AT&T's proposed deal to acquire Time Warner, it agree to pay Time Warner a $500 million fee if it couldn't get the deal approved by regulators.
AT&T has long noted that "vertical mergers" - when one company buys another that isn't a direct competitor - are typically approved.