Following last week’s Obfuscation by disclosure: a lawyerly design pattern, just a few more points on the Comcast acquisition of Time Warner from WSJ:
- “[Comcast Chief Executive Brian Roberts] sits on a presidential jobs council, has hosted President Barack Obama and top presidential adviser Valerie Jarrett at his Martha’s Vineyard home and has also golfed with the president.”
- “Mr. Roberts and his wife, Aileen, have donated $417,290 to Democrats over the past 25 years, compared with $116,150 for Republicans”
- “[Comcast] one of the most visible players in Washington…spent $18 million on lobbying in 2013, making it the seventh-highest spender overall”
- “Comcast employees made a total of $6.5 million in campaign contributions during the 2012 election cycle, including $466,000 to the Democratic National Committee and $305,000 to the president’s campaign for re-election”
- “Comcast Executive Vice President David Cohen is a major bundler of contributions for the Democrats, and has hosted a number of prominent fundraisers featuring the president at his home and other venues. Of the almost $870,000 Mr. Cohen and his wife, Rhonda, have donated to campaigns, 79% has gone to Democrats, while just 9% has gone to Republicans.”
- “Comcast’s lobbying and regulatory team includes Meredith Attwell Baker, a former Republican FCC commissioner who voted in favor of the Comcast-NBC Universal acquisition four months before she joined Comcast.”
- “One firm representing Comcast is Davis Polk & Wardwell LLP, which last year hired former top antitrust official Jon Leibowitz, who served as Mr. Obama’s first chairman of the Federal Trade Commission. The FTC shares antitrust authority with the Justice Department.”
- David Cohen: “we’re not afraid of the government review process. We know it will be stringent. We believe it will be fair and open. All we’re asking for is an opportunity to make our case.”
But what an opportunity! The parties are so sure that this deal will pass through the regulatory charade that Time Warner did not even bother asking for a breakup fee from Comcast should it fail, as is customary in such M&A activity.
Since cable/telecom markets are practically rigged, wouldn’t it be a test of faith to put Comcast’s contention that this deal is “pro-consumer, pro-competitive and strongly in the public interest” to a national referendum? It won’t happen obviously, but a useful mental exercise to remember why big business so loves regulated markets and regulators.