Time Warner and AT&T Are a Deal-Anxiety Barometer

The Trump administration at times wears its populist hat and at others its pro-business hat. When it comes to antitrust enforcement, investors are betting it is sporting the latter. Perhaps the clearest evidence of this wager is the spread between Time Warner’s share price and the price implied by AT&T’s deal for it, announced Oct. 22. If it were to close by the end of 2017, holders of Time Warner shares would stand to gain 12%. That compares with 21.6% on Oct. 31. The narrowing suggests investors are increasingly convinced that President Donald Trump won’t follow through on his pre-election threat to block the proposed merger. It also speaks to a general optimism about lenient antitrust enforcement under President Trump.