MSNBC's fate may lie in Trump's hands

CNN New York —

Months into President Donald Trump's first term in the White House, his Justice Department sent shockwaves through the media industry by suing to block AT&T's takeover of CNN owner Time Warner.

The unusual challenge sparked speculation that the lawsuit was motivated, at least in part, by a desire to punish CNN for its critical coverage of Trump.

Although the lawsuit ultimately failed and the deal was reached, the damage was done. The Trump administration's legal challenge cost AT&T valuable time in a rapidly changing media landscape and helped doom the merger.

Now, Trump returns to power at a time when the struggling media industry appears to be on the cusp of a new deal frenzy. And his administration will have ample opportunity to slow down or even kill future deals, the lifeboats that some media companies may need to survive.

Case in point: Comcast on Wednesday revealed plans to spin off MSNBC, CNBC and other cable assets into a separate company from the NBC broadcast network.

The spinoff itself will not require approval from the DOJ or Federal Communications Commission. But it's widely expected that the spinoff company will need to find a dancing partner to succeed in the world of cord cutting. This will give Trump-appointed regulators the opportunity to harm a network with which he has been in conflict for many years.

There are only two media entities that Donald Trump hates more than CNN. One is MSNBC and the other is NBC, said Craig Moffett, media veteran and founder of MoffettNathanson, in a phone interview.

The media industry raised eyebrows this week when Brendan Carr, Trump's nominee to head the FCC, linked the agency's review of the Skydance-Paramount deal to a 60 Minutes interview with Vice -President Kamala Harris. Carr told Fox News that the FCC would like to review the transcripts of the 60 Minutes interview as part of its review of Skydances' proposed deal with CBS owner Paramount.

That says a lot. It indicates that media outlets traditionally described as liberal might have a hard time making deals, Moffett said.

Jeffrey Sonnenfeld, founder and president of the Yale Chief Executive Leadership Institute, told CNN that the opportunity for a brilliant consolidation of media companies was being obscured by the new Trump administration.

Sonnenfeld, a CNBC contributor, suggested that Trump's obvious vindictiveness could lead officials to slow down deals to undermine their revenge value, even if those deals ultimately prevail in court.

Sonnenfeld argued that this is exactly what happened with the AT&T-Time Warner deal.

They walked slowly. AT&T ultimately won, but it was a Pyrrhic victory. They lost a window. It became a bad business, he said.

Gaetz and Vance are fans of Biden's antitrust cop

Trump's victory initially sparked a celebration among Wall Street dealmakers, many of whom welcomed an end to the Biden administration's intense antitrust scrutiny.

It's true that analysts expect the Trump administration to be generally less hostile to mergers. Trump will likely replace the Biden administration's tough antitrust enforcer, Federal Trade Commission Chairwoman Lina Khan.

Yet it is also true that some Republicans, including some expected to join the Trump administration, have been described as Khanservatives because they have called for stronger, not weaker, antitrust enforcement.

In February, Vice President-elect JD Vance said Khan was one of the few people in the Biden administration who I thought was doing a really good job.

Trump planned to run the DOJ with another Khan fan: former Florida Congressman Matt Gaetz. Earlier this year, Gaetz told NOTUS that the work of the FCC chairmen inspired me, and he expressed hope that it would remain in power under the Trump administration. Gaetz announced Thursday afternoon that he was withdrawing from Trump's candidacy for attorney general, a move that came as he faced growing scrutiny over sexual misconduct allegations.

As Gaetz fought earlier this week to survive a tough nomination process, Comcast dropped a bombshell on the media industry by parting ways with MSNBC, CNBC, USA, Oxygen and other networks.

Comcast CEO Brian Roberts said Wednesday that the new company would be very attractive to investors, content creators, distributors and potential partners.

Comcast promises that the new entity, for now known as SpinCo, will launch with a growth trajectory and significant financial firepower. But there is already speculation that it may be necessary to strengthen itself to survive.

This could mean a sale to another entity or an acquisition. Regardless, a future deal would likely require approval from the DOJ and other Trump regulators. (The FCC's blessing may not be required because SpinCo will not include the NBC broadcast network).

Dumped from mothership Comcast and its stable cash flows, spinoff cable channels will have less financial protection from the volatility of the television industry, not to mention less protection from the Trump administration.

It will be an interesting experiment, said Frank Louthan, an analyst at Raymond James. In theory, they should be able to survive if properly capitalized. But it's not clear. This is definitely going to be a challenge for them.

One of the major hurdles for Comcasts' spinoff cable assets is that they will have to strike new deals to distribute content without being part of NBC's broader package, in an era of aggressive cord cutting.

If it was an easy thing to do, we would have seen it happening by now, Louthan said. I suppose in the medium term they will make an acquisition or be bought out.

However, Louthan argued that a deal would not be imminent because the fallout would take a year, suggesting a transaction may not happen until after Trump's term ends.

Lee Petro, a member of the Washington, D.C. office of law firm Dickinson Wright, said it was entirely possible that the DOJ would examine a future deal involving the spinoff cable channels to harm those networks.

It's hard not to view the splits of CNBC and MSNBC as a potential response to the new administration, Petro said.

A source familiar with the matter says the company had been evaluating the potential transaction for some time, well before the change in administration.

Trump's transition team did not immediately respond to a request for comment.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos