Shares of Time Warner are falling after the US Department of Justice says selling CNN would be a prerequisite to an approval of an AT&T acquisition, according to the Financial Times.
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Time Warner is falling on reports that selling CNN would be a prerequisite to its merger with AT&T (TWX, T)
Time Warner is falling on the news that the DOJ plans to block its merger with AT&T.
Time Warner is down 5.08% to $89.85 after the news, and AT&T is up 0.29% to $33.17.
AT&T has planned to acquire Time Warner for $85.4 billion pending regulatory approval. The deal is now stalled, and AT&T says it plans to fight the ruling in court, according to unnamed sources cited by the Financial Times.
The DOJ also said that selling DirecTV would also be a path to approving the deal, according to a report from the New York Times.
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US President Donald Trump has publicly criticized the deal, which the two companies hoped to finalize by the end of the year.
Both shares previously fell on reports that the DOJ was considering blocking the deal, and fell again on Wednesday as a reason for the DOJ's block came to light.
AT&T is down 22.85% this year and Time Warner is down 7.3%.
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