Tuesday’s court ruling that AT&T Inc. can proceed with its nearly $85 billion acquisition of Time Warner Inc. could open the floodgates to a wave of mega-mergers, and investors wasted no time in betting on the future in after-hours trading.
Shares of AT&T T, +0.50% fell almost 3% in the extended session, while Time Warner TWX, +0.05% jumped 4.5%.
Tuesday’s ruling will likely give a green light for 21st Century Fox to sell some of its key TV and movie assets. While Fox has agreed to a $52.4 billion all-stock deal with Walt Disney Co., Comcast Corp. is likely to formally submit a rival $60 billion all-cash bid as soon as Wednesday. Fox shares FOX, +1.18% soared 7% after hours, while Disney DIS, -0.02% slipped 1.4% and Comcast CMCSA, +1.19% fell 2.7%.
Meanwhile, Sprint Corp. and T-Mobile USA are making their third attempt at a merger, and the path may now be finally clear. Sprint S, +0.95% shares gained 3.6% after hours, while T-Mobile TMUS, +0.17% rose 2%.
The ruling could also affect a pair of giant health-care deals. Pharmacy chain CVS Health Corp. is hoping to complete a $69 billion acquisition of health insurer Aetna Inc.by the end of the year. CVS shares CVS, -0.88% were up 1.7% after hours, while Aetna AET, -0.76% jumped 3.2%.
And Cigna Corp.’s $67 billion bid for pharmacy-benefit manager Express Scripts Holding Company may also benefit. Cigna CI, -1.18% was up 0.7% after hours, while Express Scripts leapt 4.8% higher.
