Why Wall Street doesn't like the AT&T - Time Warner deal

AT&T and Time Warner think their $85 billion merger makes strategic sense. Now comes the tough part -- convincing skeptical investors that the deal won't be the second coming of AOL Time Warner. The stocks of both companies fell after the opening bell: Time Warner lost 3% and AT&T dropped 2%. Why? It's because AT&T is paying cash for half of the deal. The remainder will be financed with stock. AT&T's stock is falling -- and dragging down Time Warner -- due to concerns the deal could fall apart following what is expected to be intense regulatory scrutiny.