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AT&T slips after Time Warner buyout gets approval


(Reuters) - Shares of Inc fell 2 percent on Wednesday after a approved the telecom company's $85 billion buyout of Inc, clearing the path for more deals in a rapidly changing industry.

The lifted shares of other telecom and companies such as Sprint Corp, and by around 4 percent in premarket trading. was also up about 5 percent.

"Once technically driven volatility wears off we expect the stock to move higher as closure will likely provide a new investor catalyst including $1.5 billion in anticipated cost synergies," said

However, at least one raised concerns about the debt was taking on as part of the deal.

"will be a positive for AT&T's income statement, at least initially. But it will be a negative for the balance sheet," said research firm Moffett, who downgraded the stock to "sell".

"The new will carry an astounding $249 billion of debt."

The approval for the deal, which was opposed by Donald Trump's administration, marks a turning point for cable, satellite and all eyeing to buy content companies as a way to add revenue.

Following the approval, investors are looking out for an announcement from U.S. Corp, which last month said it was preparing to outbid Walt Disney Co's $52 billion offer to buy most of Twenty First Century Fox Inc's assets.

(Reporting by in Bengaluru; Editing by Saumyadeb Chakrabarty)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, June 13 2018. 17:16 IST