PK, AAI Wave Caution Flag on WarnerMedia/Discovery
Be "wary" of media transactions that consolidate intellectual property, the American Antitrust Institute and Public Knowledge wrote acting Assistant Attorney General Richard Powers Thursday, pointing to the pending WarnerMedia/Discovery deal. "Some degree of familiarity (a sequel, reboot, or a spinoff)…
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is among the strongest indicators of market success," and new studios aren't likely to easily enter the market, they said. They said AT&T's spinoff of WarnerMedia three years after its Time Warner acquisition "tells a cautionary story."