Media and entertainment sector-related exchange traded funds were in the spotlight Wednesday after AT&T (NYSE: T) won major legal battle in pursuit of acquiring Time Warner (NYSE: TWX).

The iShares Evolved U.S. Media and Entertainment ETF (NYSEArca: IEME) was among the best performing ETFs Wednesday, rising 2.6%.

Strengthening the media and entertainment ETF, Twenty-First Century Fox (NasadqGS: FOX) rallied as traders believed this media company could benefit the most from AT&T’s victory.

FOX shares jumped 7.3% and class A FOXA shares surged 7.1% Wednesday.

U.S. District Judge Richard Leon ruled Tuesday that AT&T could acquire Time Warner with no conditions, overruling a Justice Department antitrust challenge, CNBC reports.

Fox to Benefit from Greater M&A Interest

In response, Wall Street firm Jefferies reiterated its buy rating on 21st Century Fox shares as it expected Disney (NYSE: DIS) and Comcast (NasdaqGS: CMCSA) will fight to acquire the company in a “more lenient regulatory environment” for mergers and acquisitions.

DIS shares gained 3.1% and CMCSA was up 0.7% Wednesday.

“We see FOXA as a clear winner following today’s ruling, as it will likely set off a bidding war between CMCSA and DIS,” analyst John Janedis said in a note. “Given FOXA’s strategic importance, we expect both to stretch their B/S [balance sheets], but retain investment grade ratings, translating to a max bid of $42.50/$80B – ex Sky.”

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