The 2024 presidential election could very well have a long standing impact on the future of the media industry.
As president-elect Donald Trump prepares to assume office in January, some media executives are speculating what the new administration could mean for the media industry writ large. On Thursday, Warner Bros. Discovery CEO David Zaslav shared some of his thoughts about a Trump presidency’s potential impact during the company’s quarterly earnings call.
Warner Discovery CEO David Zaslav says on earnings call that Trump administration could offer “an opportunity for consolidation that would provide a positive and accelerated impact on this industry.”
— Joe Flint (@JBFlint) November 7, 2024
Per Joe Flint of the Wall Street Journal, Zaslav speculated that the incoming administration could offer, “an opportunity for consolidation that would provide a positive and accelerated impact on this industry.” No doubt, Zaslav is referring in-part to the legal hangup currently facing Venu Sports, the joint venture of WBD with Fox and Disney that is currently facing antitrust scrutiny. Zaslav could also be referring to other M&A opportunities that fit WBD’s portfolio.
Legal experts, including entertainment lawyer Corey Martin speaking to AA’s Daniel Kaplan, speculate that under Trump’s Justice Department, “There’s going to be, again, across a number of different sectors, but certainly in media, a wave of deregulation.”
“A lot of folks I know in media are actually putting a pause on their exploration of M&A opportunities to kind of take a wait and see approach to see what happens with the election. And to the extent there ends up being a Republican administration, they are more than likely going to be more aggressive in terms of pursuing some of the M&A opportunities that they’ve identified,” Martin explained.
That seemed to be the general tenor of Zaslav’s remarks on Thursday, who also added that consolidation is “needed for these businesses to be stronger.” WBD finds itself in a position that is particularly ripe for consolidation given the company’s heavy reliance on its suite of cable assets for cash flow.
Beyond a more favorable regulatory environment, the company’s streaming service, Max, provided some positive news for investors Thursday. Max saw its largest ever quarterly subscriber growth since launch, adding 7.2 million subscribers globally to bring its total to 110.5 million. WBD shares are up over 11% following earnings.
Even with more subscribers and an administration that may steer its Justice Department away from media mergers, WBD finds itself in a precarious position compared to its peers. While its primary competitors like Comcast and Disney are diversified in businesses outside of media, WBD has little to fall back on besides its content. And with its core business — linear cable — steadily declining, time is of the essence.
So while the possibility of consolidation is certainly good news, there’s a long way to go before any deal is actually realized.
[WBD]
About Drew Lerner
Drew Lerner is a staff writer for Awful Announcing and an aspiring cable subscriber. He previously covered sports media for Sports Media Watch. Future beat writer for the Oasis reunion tour.