US telecoms giant AT&T has won its court case to buy Time Warner for $85bn (£63.5bn), without conditions, in a landmark ruling for the global entertainment and media industry.
The decision will allow AT&T to compete with internet companies in the digital advertising space, providing it with ample new sources of revenue.
The deal is seen as a turning point by many in the media industry, as companies like Netflix and Google continue to dominate the space by producing their own content and selling it direct to consumers at a cheaper price than most premium TV subscriptions.
The ruling is also expected to pave the way to success for Comcast’s bid for 21st Century Fox, which has seen some contention in recent weeks.
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If completed, the merger will be the fourth largest ever attempted in the global telecoms and media space. It will also be the 12th largest deal ever made, according to data from Thomson Reuters.
“I conclude that the government has failed to meet its burden of proof,” district court Judge Richard Leon told the court, labelling some of its arguments against the deal "gossamer thin".
AT&T's share price remained about the same in post-market trading following the decision, while Time Warner's share price rose more than five per cent.