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John Malone, the pre-eminent dealmaker in the media and technology industry, is pressing for merger activity amid an anticipated rollback of regulations under the incoming administration of Donald Trump.
Charter Communications, the cable television and broadband company that has just agreed to buy his Liberty Broadband, should be allowed to merge with rival cable operators Comcast, Cox or T-Mobile, the billionaire “cable cowboy” told investors on Thursday.
“The idea that Charter should be limited to 30 per cent of the US terrestrial footprint while Big Tech has the globe, and even Elon [Musk] has the globe, is silly,” the Liberty Media chair said. “Tying an industry’s hands behind its back and allowing Big Tech to run wild in every direction that they choose to run in, I think is inappropriate.”
Malone’s pronouncement comes as mass media companies have struggled for years due to the disruption of linear television. Companies such as Warner Brothers Discovery have lost a huge share of their business to streaming services, leading to billions in writedowns and attempted mergers, like satellite TV provider DirectTV’s now-abandoned purchase of Dish.
Trump’s anticipated dismissal of Federal Trade Commission chair Lina Khan and Department of Justice chief Jonathan Kanter has spurred hopes among media executives grappling with deflated share prices that tie-ups may escape harsh antitrust scrutiny. This is despite indications that the new White House administration is likely to continue strict enforcement of media deals.
David Zaslav, WBD’s chief executive, said earlier this month the new administration might offer a “change of pace” and an opportunity for a wave of consolidation.
Malone’s comments came a day after he announced he would simplify his media empire by spinning off event ticketing company Live Nation and events specialist Quint from Liberty Media into a separate public company following a wave of legacy media companies looking to clean up their corporate structure amid a wave of anticipated dealmaking.
Last month, broadcaster Comcast said it was weighing a spinout of its cable networks.
The remaining Liberty Media will focus on sports, following its $8bn acquisition of Formula One in 2017. The 83-year-old Malone will step in as interim CEO after the departure of prolific dealmaker Greg Maffei, who said he would step down as CEO after nearly 20 years at the helm.