The pace of deal making in the media sector is expected to accelerate this week, as a court decision on whether AT&T can buy Time Warner clarifies the regulatory environment. Media companies are desperate to get bigger so they can better compete with tech giants like Netflix, Facebook and Google. And tech firms, such as Apple, are also seen as potential buyers of entertainment companies.
Whichever way the court’s decision on AT&T-Time Warner goes, deals are likely. If AT&T prevails over the Justice Department’s antitrust lawsuit, which investors expect, Comcast is sure to kick off its promised long-anticipated bidding war for 21st Century Fox. Meanwhile, other telecom or pay TV operators like cable giant Charter Communications may try to match AT&T in entertainment by bidding for companies like CBS, Discovery Communications or Lionsgate.