Sara Fischer, a senior media reporter at Axios known for her expertise in media and entertainment, joins to discuss Hollywood's future under a potential second Trump presidency. They delve into anticipated mergers and acquisitions, particularly with Warner Bros. Discovery. Fischer highlights challenges for big tech and TikTok's uncertain future in the U.S. The conversation also touches on Disney's leadership amid political pressures and rumors about a new 'Star Wars' trilogy, sparking exciting industry implications.
The potential for increased mergers and acquisitions in Hollywood hinges on a less restrictive regulatory environment following Trump's election.
Trump's unpredictable relationship with media and big tech will significantly impact regulatory approaches and the future of platforms like TikTok.
Deep dives
M&A Prospects in the Trump Era
The potential for mergers and acquisitions (M&A) in the entertainment industry is seen as a significant opportunity following the Trump election. Executives, including David Zaslav of Warner Brothers Discovery, express optimism that a less restrictive regulatory environment will facilitate easier deals, which had been hindered under the Biden administration. This prospect has sparked discussions around the ability of firms like Paramount and others to engage in strategic consolidation, particularly as regulations around ownership are expected to ease. However, companies may still face challenges due to Trump's history of intervening in deals based on personal vendettas, which could complicate the landscape.
Impact of Trump's Media Relations
Trump's relationship with the media and personal biases are anticipated to create a fluctuating dynamic between the administration and major media companies. While some executives count on a favorable environment for M&A, they also remain aware of Trump's unpredictable nature, especially regarding companies he views as adversaries. Past instances, such as the Department of Justice's delay in the AT&T-Time Warner merger, highlight how personal animosity can lead to significant obstacles for media consolidation. These tensions indicate that while opportunities may arise, they come with inherent risks tied to Trump's management style.
The Future of Content Regulation
Discussion about regulatory changes reveals concerns about how a Trump administration might influence content regulation, particularly concerning big tech companies. The Federal Communications Commission (FCC) under Trump could shift toward less aggressive stances on breaking up large tech firms like Google, potentially altering the advertising landscape significantly. Alongside this, media companies could expect scrutiny regarding their ownership structures and could seize opportunities presented by relaxed rules. However, the regulatory environment might still see efforts related to issues such as child protection and advertising practices, reflecting ongoing tensions around big tech.
The Changing Media Landscape
The cultural influence of platforms like TikTok is a focal point, with potential implications from Trump's stances and decisions. Legal rulings on TikTok are expected around the time of the inauguration, and how Trump engages with these issues could determine the app’s future in the U.S. Additionally, strategic interests could lead to alignment with figures like Elon Musk, who may have conflicting goals with Trump's administration. This interplay between business interests and media platforms signals a significant shift in how content will be created and consumed in the coming years.
Matt is joined by Axios media reporter Sara Fischer to discuss the Hollywood business implications of the second Trump presidency. They get into the possibility for more M&A, specifically Warner Bros. Discovery and LIV-PGA, whether Trump will go after big tech, the future of TikTok in the United States, and the future of content moderation (02:31). Matt finishes the show with a prediction related to the latest announcement that a new ‘Star Wars’ trilogy is in the works (26:57).
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