New York: The American multinational conglomerate AT&T has reportedly ruled out selling CNN in order to secure its $85 billion merger with Time Werner.
Earlier the media sources reported that the US Justice Department had told AT&T its acquisition of Time Warner would not be approved unless the company decides on selling CNN or DirecTV.
CNN (Cable News Network), Cartoon Network, TBS, TNT and Turner Classic Movies are all part of Turner Broadcasting, a division of Time Warner.
One Justice Department source told that the idea of shedding CNN to complete the deal originated with AT&T, a contention that drew an immediate denial from the Dallas-based firm.
“I have never offered to sell CNN and have no intention of doing so,” said AT&T Chairman and CEO Randall Stephenson in a statement on Wednesday after the chief revealed that the management was no longer sure about the acquisition.
“We are in active discussions with the (Justice Department). Those are continuing on. I can’t comment on those discussions,” CFO John Stephens said at an investor conference. “But …I can now say that the timing of the closing of the deal is now uncertain.”
The Wall Street Journal, meanwhile, said that AT&T and the Justice Department remained far from agreement despite months of talks.
AT&T announced in 2016 that it had reached an accord to purchase Time Warner, whose other properties include HBO and Warner Bros. studios.
Accusing CNN of spreading “fake news,” President Donald Trump has been at odds with the network since the 2016 election campaign, when he spoke out against the proposed merger of AT&T and Time Warner, Efe news reported.
Shares of AT&T climbed 1.15 per cent on Wednesday on the New York Stock Exchange, while Time Warner tumbled 6.51 per cent.