Shares of telecommunications companies slipped as a big deal appeared to be on the ropes.
The Justice Department is laying the groundwork for a potential lawsuit challenging AT&T Inc.'s planned acquisition of Time Warner Inc. if the government and companies can't agree on a settlement, The Wall Street Journal reported, citing people familiar with the matter. The department's antitrust division is preparing for litigation in case it decides to sue to block the deal, these people said. Simultaneously, the department and the companies are discussing possible settlement terms that would lead to the deal winning government approval with conditions attached. The two sides, however, aren't yet close to an agreement, The Journal reported.
Discovery Communications reported an accelerating decline in subscribers to its channels in the U.S., a sign that the unraveling of the cable television bundle is picking up speed.
-By Amy Pessetto, email@example.com
(END) Dow Jones Newswires
November 02, 2017 17:26 ET (21:26 GMT)