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Two directors from Warner Bros. Discovery resigns after antitrust investigation

The exterior of the Warner Bros. campus Discovery of Atlanta is pictured after the Writers Guild of America began its strike against the Alliance of Motion Pictures and Television Producers, in Atlanta, Georgia, May 2, 2023.

Alyssa Pointer | Reuters

Two Discovery Warner Bros. Directors Steven Miron and Steven Newhouse are resigning following an investigation by the U.S. Department of Justice into a potential antitrust violation, according to a company statement released Monday.

The company said Miron and Newhouse, who were both named directors in April 2022 as part of the WarnerMedia and Discovery merger, were under investigation to determine whether their participation on the board constituted a violation of Section 8 of the Clayton Antitrust Act, which largely prohibits the same directors or companies from simultaneously serving on the boards of competitors.

Miron is the CEO of private media company Advance/Newhouse Partnership and a senior executive at Advance, which invests in media and technology companies, according to the release. Newhouse is co-chairman of Advance.

Their two terms on the board of directors of Warner Bros. were set to expire in 2025.

Rather than contest the DOJ’s case, the company said Miron and Newhouse voluntarily chose to resign from their positions, effective immediately. Neither director admitted any violation.

“We are proud to have played a role in building this great company and remain a significant shareholder. We are disappointed to be leaving the board, but want to do the right thing for WBD,” Newhouse said in a press release.

In a statement released Monday evening, the DOJ said the company in conflict was Charter, a Connecticut-based media company that, like Warner Bros. the Max streaming platform, provides video distribution services. According to the DOJ, Advance representatives held seats at both Warner Bros. companies. board of directors and board of directors of the Charter.

“Today’s announcement is a victory for consumers,” Assistant Attorney General Michael Kades of the Justice Department’s Antitrust Division said in a statement. “In enacting Section 8 of the Clayton Act, Congress was concerned that competitors who shared management would compete less vigorously to provide better services and lower prices. We will continue to vigorously enforce antitrust laws where necessary to combat overreach by companies and their designated agents. “.

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