Aftermarket trade ripples run wide from AT&T/Time Warner decision

|By:, SA News Editor

What's going on in aftermarket for stocks of other companies linked to large M&A deals after AT&T's (NYSE:T) decisive victory over the government in its pursuit of Time Warner (NYSE:TWX)?

Along with mergers in other sectors like healthcare, most eyes are on media deals that are closer to the action. Comcast is likely to launch a formal competing cash bid of around $60B for the media assets of Twenty-First Century Fox as soon as tomorrow, setting up a wrestling match with Disney for the prized content. After hours: CMCSA -4%; FOX +6.5%, FOXA +6.9%; DIS -1.5%.

Comcast also is in pursuit of Sky (OTCQX:SKYAY), also being sought by part-owner Fox as well as Disney (depending on how/when Disney's deal for Fox shakes out).

Sprint and T-Mobile are likely celebrating, since a rejection of the vertical combo of AT&T/Time Warner would have put a massive chill on their proposed horizontal tie-up. After hours: S +3.4%, TMUS +1.6%.

CBS -- currently locked in an internal struggle over directives to look at re-merging with Viacom -- could re-evaluate its position, as could Viacom. In late trading, CBS +4.6%; VIA +5.1%, VIAB +4.3%.

Lions Gate Entertainment is seen as a likely merger partner with ... someone, as one of a dwindling number of content firms in the medium-sized space; LGF.A +7.6%; LGF.B +9.5%.

Discovery (NASDAQ:DISCA), another likely merger candidate, is up 3.7% in late trading.

Sinclair Broadcast Group (NASDAQ:SBGI) and Tribune Media (NYSE:TRCO) will press for government approval of their merger, which had previously run afoul of broadcast station ownership concentration rules. SBGI +1.5%; TRCO +1.4%.

And Netflix (NASDAQ:NFLX), potentially facing a new streaming world with other companies marshaling resources to fight its dominance, is off 0.9% postmarket.

Currently after hours, with some arbitrage going on: T -2.3%; TWX +4.5%.