Join NexChange - the professional
network for the financial services
industry - and receive a free one-
year subscription to Forbes
Wall Street Analysts Reflect on AT&T-Time Warner Ruling, Assess Implications Outside Tech, Media
A U.S. District Court approved AT&T Inc. (NYSE: T)’s purchase of Time Warner Inc (NYSE: TWX) Tuesday and advised the Justice Department not to seek a stay of the ruling.
The results were celebrated by stocks involved in and distantly peripheral to the case — and left analysts generally more bullish on corporate America.
What It Means For AT&T
KeyBanc expects AT&T investor focus to shift from the firm’s struggles in wireless, wireline and entertainment toward positive Time-Warner synergies.
“Longer term, the opportunity for AT&T to improve TWX’s ad monetization by integrating data could provide additional synergy, but we are in the very early stages of targeted advertising for AT&T,” KeyBanc analysts wrote in an note.
Notably, analysts seemed least interested in the effects on AT&T’s thesis and instead emphasized broader sector implications.
Implications For Media
To Morgan Stanley, the approval serves as formal recognition that tech platforms — Netflix, Inc. (NASDAQ: NFLX), Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL) and Facebook, Inc. (NASDAQ: FB) — are disrupting ... Photo: Getty iStock