Washington: A U.S. federal judge ruled on Tuesday that AT&T can move forward with its $85 billion acquisition of Time Warner, the parent company of news channel CNN. The judge today cleared the mega merger between AT&T and Time Warner in an antitrust case with potential far-reaching implications.

Judge Richard Leon said at a hearing that he has found, after a six-week trial, that the deal does not violate antitrust law and can proceed.

Leon discouraged the government from asking him to put his own ruling on hold pending appeal, and said that if asked he would deny a stay. "I hope the government has the wisdom and courage" not to seek a stay, he said.

He added that the U.S. government failed to meet the burden of proof that the tie up between the largest U.S. pay TV operator and media entertainment giant Time Warner would harm competition.

AT&T's deal to acquire Time Warner in a stock-and-cash transaction is valued at $107.50 per share, for a total price of $85.4 billion.

The merger is a signal of the action companies are taking to thwart new threats like Netflix and Amazon that are taking viewers away from cable companies. This explains why companies like Time Warner, which make movies and TV shows, are combining with companies like AT&T, which deliver that content to customers. (With Agency inputs)

(The above story first appeared on LatestLY on Jun 13, 2018 02:26 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).