Warner Bros Discovery Board Members Resign Amid Antitrust Investigation
Investigation Triggers Resignation
Warner Bros Discovery announced on Monday the immediate resignation of independent directors Steven Miron and Steven Newhouse from the company’s board. The resignations came after the U.S. Department of Justice (DOJ) informed them of an investigation into possible violations of Section 8 of the Clayton Antitrust Act.
No Admission of Wrongdoing
The media company clarified that Miron and Newhouse have not admitted to any violations. Both directors were appointed as Class III directors following the merger of Discovery Inc and WarnerMedia in April 2022. They were initially selected by Discovery Inc as two of its six designees to the Warner Bros board.
Antitrust Concerns and Competitor Boards
Section 8 of the Clayton Antitrust Act prohibits directors from serving on the boards of competitors. Miron and Newhouse both serve on the board of Charter, a direct competitor of Warner Bros Discovery in the consumer video market.
Parting Words and Market Response
“We are disappointed to leave the Board, but wish to do the right thing for WBD,” said Newhouse in a statement. Following the resignations, Warner Bros reduced the size of its board to 11 directors, resulting in a slight drop in share prices during extended trading hours.
