“The era of lax enforcement is over,” proclaimed DOJ antitrust chief Jonathan Kanter in April. “And the new era of vigorous and effective antitrust law enforcement has begun.” …
On Oct. 31, the Department of Justice antitrust division landed a major victory when a federal judge blocked Penguin Random House’s $2.175 billion bid to buy rival Simon & Schuster from Paramount Global. After legal wrangling in a trial closely monitored by Hollywood, U.S. District Judge Florence Pan found that combining two of the world’s largest book publishers would hurt competition for best-selling books. “The government has presented a compelling case that predicts substantial harm to competition as a result of the proposed merger,” Pan wrote. “The post-merger concentration of the relevant market would be concerningly high: The merged entity would have a 49% market share, more than twice that of its closest competitor.”
The ruling marks a triumph for a rejuvenated DOJ antitrust division after decades of lax enforcement — and a troubling sign for Hollywood moguls contemplating mergers. “Anybody who is looking to do sizable M&As in the media sector where you’re going to lose a player should be concerned after this,” the head of a mid-major studio, speaking under the condition of anonymity, tells The Hollywood Reporter. …
Meanwhile, renewed DOJ attention on the 2010 merger approval of Ticketmaster and Live Nation — which has seen high-profile ticket snafus for acts like Taylor Swift and Bruce Springsteen — is amplifying calls from activist groups who have been calling for an unwinding of the deal.
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