AT&T CEO Randall Stephenson today said his company is ready to fight the Trump administration in court in order to complete its $85.4 billion purchase of Time Warner Inc.

The Department of Justice is reviewing AT&T's proposed acquisition of Time Warner and could file an antitrust lawsuit to block the deal or force AT&T to make concessions. Reports yesterday indicated that the DOJ is asking AT&T and Time Warner to sell off either CNN or DirecTV in order to win government approval of their merger (Time Warner owns CNN and AT&T owns DirecTV).

Stephenson cast some doubt on those reports today, but he also said AT&T is ready for a court battle. AT&T would still like to settle with the government if it can get a favorable deal, but the company will fight in court if the DOJ's demands are too high.

"We'll have to ask ourselves, 'Is a negotiated settlement a better or worse outcome than if we litigate?'" Stephenson said at a conference hosted by The New York Times. "If we feel like litigation is a better outcome, then we will litigate."

AT&T is already prepared for court. "Since the day we announced this, we've been preparing to litigate this deal," Stephenson said. If the DOJ sues AT&T to block the merger, "our preference would be sooner is better, and we're prepared to litigate now," he said.

Selling CNN is off the table

Stephenson closed the door on selling CNN. "I have never offered to sell CNN," he said. "There is absolutely no intention that we would ever sell CNN."

Despite yesterday's reports, Stephenson also said that he has "never been told" that AT&T and Time Warner must sell CNN to complete the merger.

Stephenson did not answer directly when asked if AT&T would be willing to sell DirecTV. "What gets discussed inside that [negotiating] room is highly privileged and I cannot go there," he said. But just moments later, Stephenson repeated, "I am not selling CNN."

More than a year has passed since AT&T announced its plan to buy Time Warner. The merger agreement allows both companies to walk away from the deal if it isn't completed by April 22. Stephenson said AT&T would ask for an expedited hearing in order to move quickly through the court system.

Trump's hatred of CNN has raised questions about the independence of the DOJ from the White House, which could play a role in a court case.