Shares in media company Time Warner fell 5% on Thursday following leaks that the US government may block AT&T’s proposed takeover or impose tough conditions.
A story published by Dow Jones said the US Justice Department (DoJ) and AT&T were “discussing possible settlement terms that would lead to the deal winning government approval with conditions attached”.
AT&T made its move on Time Warner – whose empire includes CNN, Warner Bros and HBO – just over a year ago.
According to the Dow Jones report, the DoJ is “actively considering” an antitrust lawsuit, but said no decision had been made.
Reuters said a source had confirmed that AT&T Inc and the U.S. Department of Justice were discussing conditions for its acquisition of Time Warner to win government approval.