Analysts said that sentiment has been weighing on Time Warner stock TWX, -0.31% , which has lagged the AT&T T, -2.32% offer price ever since.
“This deal risk probably explains a decent portion of the spread between [Time Warner] currently at $88 and the $108 deal price,” analysts at RBC Capital Markets wrote in a note.
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FCC Has 'Serious Concerns' About AT&T Direct TV Mobile Video Service
U.S. Federal Communications Commission told AT&T it has “serious concerns” about whether rivals will be able to compete with its DirecTV , that AT&T’s DirecTV service and its zero-rated app “may obstruct competition and harm consumers” because it could be too expensive for rivals not affiliated with AT&T to sponsor data programs to compete. The offerings may violate the FCC’s 2015 net neutrality rules, the government said.AT&T, which plans to launch DirecTV Now later this month, said Thursday that consumers gain from watching video without using up their data — a practice known as zero rating. Any video provider can pay AT&T, "at our lowest wholesale rates," to let customers watch without using up their AT&T data, said AT&T executive Bob Quinn in an emailed statement.