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Particle LSUGS
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new particle slug3
President Biden still hasn't named permanent leaders at the key agencies overseeing the tech and telecom industries, giving him a late start on confronting powerful U.S. companies.
Why it matters: If Biden doesn't move quickly, there won't be enough time left for his administration to take on big targets and tackle thorny policy problems.
Biden's tech policy agenda will be largely shaped by the executive branch and regulatory agencies, rather than by a divided and distracted Congress.
The big picture: When compared to the previous four administrations' timelines for nominating the top regulators at these agencies, the Biden administration has fallen months behind in naming leaders for the Federal Trade Commission, the Federal Communications Commission and the Justice Department's Antitrust Division.
The backdrop: Unlike other administrations, Biden became president during a global pandemic, the management of which has been the top priority. Striking an infrastructure deal with Congress is also arguably higher on the to-do list for the administration than technology policy these days.
How it works: Once contenders for the top agency jobs are vetted, nominating the president's picks to fill the positions is just the start of the process.
Yes, but: These top posts are filled with acting chairs. Acting FTC Chairwoman Rebecca Slaughter, and Acting FCC Chairwoman Jessica Rosenworcel are angling for the permanent jobs.
The catch: Temporary agency leaders are not as empowered to pursue an aggressive policy agenda as permanent heads.
Between the lines: The head of Justice's Antitrust Division is particularly important during a time of rapid industry consolidation. With limited resources, DOJ has to carefully pick which deals it will review.
Of note: In the past two weeks alone, Amazon announced the acquisition of MGM Studios and AT&T announced it was spinning off WarnerMedia, which will merge with Discovery.
What to watch: Another tech agency needing an appointed leader is the National Telecommunications and Information Administration, an arm of the Commerce Department that takes the lead on policy regarding government-owned airwaves, which are in high demand due to 5G.
AT&T is in talks with media giant Discovery about merging its media assets, like CNN, TBS and TNT, according to two sources familiar with the discussions.
Why it matters: A potential merger could allow AT&T and Discovery to better compete with entertainment giants like Disney and Netflix in the video streaming wars.
Details: According to Bloomberg, which first reported the news on Sunday, the companies are still figuring out how the deal would be structured.
Be smart: AT&T and Discovery have both launched general entertainment streaming platforms in the past year, but neither HBO Max nor discovery+ come close to the number of subscribers of Disney+ or Netflix.
By the numbers: A merged company's subscriber numbers will still pale in comparison to the streaming giants.
Between the lines: A combination of assets could result in a media company worth over $150 billion in enterprise value, per the Financial Times. Discovery today has a market cap of nearly $17 billion. Its value reflects its nearly $12 billion acquisition of Scripps Networks Interactive for in 2018.
Catch up quick: Analysts and investors have expressed concerns about AT&T's media strategy, since its $85 billion acquisition of Time Warner in 2018.
What to watch: While it’s still unclear how serious talks are between the two companies, some reports suggest the deal could be announced as soon as this week.