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Fox, other media companies rise after AT&T-Time Warner approval


(Reuters) - Twenty First Century Fox Inc's shares rose 8 percent on Wednesday as an approval for AT&T's buyout of Inc spurred speculation that Corp would proceed with an offer for most of the company's assets.

Comcast's proposal, widely expected later in the day, will upend Fox's $52 billion all-stock deal to be bought by

A on Tuesday approved Inc's $85 billion buyout of Time Warner, clearing the path for more such deals in a rapidly changing industry.

Shares of other telecom and companies such as Sprint Corp, and were all up around 4 percent in premarket trading. rose about 5 percent.

"The implications of the ruling are more relevant for other potential vertical deals," Simon Flannery, at said.

AT&T's stock, however, was down nearly 4 percent, with at least one raising concerns about the debt the company would absorb 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."

(Reporting by in Bengaluru; Editing by and 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. 18:58 IST