However, in Verizon's most recent quarterly earnings call, executives said they would rather sit out the current consolidation, and instead build out its content offerings through partnerships with independent media companies.
AT&T, meanwhile, saw its share price fall 2.1 percent, to $33.63, after the ruling was revealed. However, AT&T has argued that making such a deal would be necessary to compete against other tech companies.
Elsewhere in the health space, shares of Express Scripts, which is about to be acquired by Cigna, soared 4.9 percent, to $83.05.
Shares of both T-Mobile and Sprint rose; their proposed combination is pending.
A ruling in favor of AT&T would also ease the path for a merger.
Before the trial started, AT&T lawyers said the Time Warner deal may have been singled out for government enforcement but Judge Richard Leon of the U.S. District Court for the District of Columbia rejected their bid to force the disclosure of White House communications that might have shed light on the matter.
Leon said the government's theory that the merger would give the combined company too much leverage in programming negotiations was "plagued by inconsistencies" and contradicted by the Justice Department's own evidence.
Putin says ready to meet Trump 'as soon as' Washington is ready
Putin echoed the Iranian leader in saying that their joint regional alliance will go on, particularly in Syria, Fars reported. Speaking at the start of his meeting with Putin on the sidelines of the summit, Rouhani hailed close Iran-Russia ties.
The judge made his remarks to a packed courtroom in an unusual session weeks after the trial ended.
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. The "drop dead" deadline for completing the merger is June 21. The Walt Disney Company is also looking to make an offer on the company.
But some experts urged caution in thinking that the DOJ's top antitrust official Makan Delrahim would allow a Comcast-Fox deal to go through unopposed. AT&T's favorable ruling would seem to clear any regulatory hesitation.
Prior to the news on the decision in the case, AT&T stock closed up 0.5% (to $34.50 per share) and Time Warner closed up 0.05% in regular trading (to $96.22 per share) which concluded at 4 p.m. ET.
Time Warner owns CNN, HBO, home to Game of Thrones and Veep, and Warner Brothers, whose franchises included Batman, the Lego movies and Harry Potter. Trump weighed in again after the justice department filed its suit: "Personally, I've always felt that that was a deal that's not good for the country". AT&T did not immediately respond to a request for comment.
Analysts say the judge's go-ahead will likely rewrite the rules on how courts apply antitrust laws, paving the way for a number of other potential sales involving names like Comcast, Disney, 21st Century Fox and several other content creation and distribution companies.
"We would lose a lot of subs", Schlichting said, during an hour and a half of testimonies at the U.S. District Court in Washington, D.C.
Leon said the government failed to prove that the merger would lead to higher prices and other ham to consumers. In fact, sometimes a merger can help competition and consumer choice, as is more often the case with vertical mergers.