President Trump warned more than a year ago that he would do all he could to prevent AT&T Inc. (T) - Get Report from acquiring Time Warner (TWX) in a $85.4 billion acquisition that would combine the country's largest pay-TV provider with the owner of HBO, Warner Bros. film studio and CNN.
On Monday, Nov. 20, Trump carried through on his pledge as the Department of Justice's antitrust division sued AT&T in U.S. District Court to prevent the acquisition from going forward. In response, AT&T CEO Randall Stephenson called a press conference to assert that his company would prevail in court, though he was quick to add that AT&T is open to a solution that would allow the deal to win regulatory approval.
"The best legal minds in the country agreed this transaction would be approved since we don't even compete with each other," Stephenson said. "This defies logic, and it is unprecedented."
Anticipating the lawsuit, Time Warner shares fell 1.1% to close at $87.71. AT&T was little changed at $34.64. In after-hours trading as of 6:30 p.m. ET, Time Warner stock was rising slightly and AT&T had dropped by less than 1%.
Watch More with TheStreet:
- Here's How to Keep Your Budget Afloat During the Holiday Season
- You Have Nothing to Fear About Investing In the Stock Market: Tony Robbins
- Apple's Delayed HomePods Are Part of a Much Bigger Play on Digital Music
- 5 Things You Shouldn't Buy on Black Friday