CEOs Peek into the Crystal Ball of Antitrust Decisions
In a plot twist befitting a low-budget reality show, CEOs are collectively holding their breath, wondering how the Federal Trade Commission (FTC) under President Trump will differ from the Biden era. Spoiler alert: the hope for a kinder, gentler FTC has evaporated faster than a misty morning fog. Currently, the FTC is embroiled in a lawsuit against Meta, and chatter about breaking up this social media behemoth is louder than your Aunt Linda’s karaoke renditions of 80s power ballads.
The Dueling Chairpersons: A Tale of Two Commissions
Former Federal Trade Commissioner Christine Wilson is polishing her soapbox, ready to unleash her critiques on ex-chair Lina Khan. Last week, she boldly declared that Khan’s interventionist approach has been more heavy-handed than a toddler with a paintbrush. Ms. Wilson, having left the FTC in 2023, claims that Khan has not only “scorned and sidelined” career staff but also orchestrated a symphony of slowed and blocked mergers. Truly, it sounds like a grudge match worthy of a pay-per-view slot!
M&A Shenanigans: A Procedural Circus
“Chair Khan believed that all mergers were bad,” Wilson opined, adding that Khan wielded “procedural shenanigans”—the latest buzzword that barely beats “fiscal prudence” in the race for corporate jargon of the year. These “shenanigans” were supposedly designed to chill M&A activity – not exactly what CEOs imagined when they thought “deal season.”
Who’s Playing by the Rules This Time?
During a riveting sit-down with FTC Commissioner Melissa Holyoak at the Berkeley Spring Forum—because who doesn’t enjoy a good chat about antitrust regulations?—Wilson asked whether the previous FTC’s practices could be termed “egregious.” Spoiler alert: they could. But Holyoak offered a refreshing perspective on transparency, which sounds as likely as finding a unicorn in your backyard.
The Former Chair Strikes Back
In true “he said, she said” fashion, a former FTC official from Khan’s reign described Wilson’s comments as “shockingly out of touch with reality.” It seems we have our classic case of “everyone is right and everyone is wrong”—a scenario worthy of its own reality show if not a full-length film.
Andrew Ferguson: The Enigmatic New Face
Fast forward to the current FTC under Andrew Ferguson, who has made it crystal clear through his memos that the Biden-era merger guidelines are here to stay. Those holding out hope for a new era of corporate freedom should prepare for disappointment as Ferguson expressed he has no desire to turn corporate America into an “open season” for M&A deals. In other words, if you were hoping to throw around cash like it’s confetti, do temper those expectations.
A Cautiously Optimistic Future?
Meanwhile, as if this soap opera couldn’t get any juicier, DOJ’s antitrust division leader, Gail Slater, has also expressed concern about industry concentration. She’s declared enforcement will consider its direct financial impact on everyday Americans, a sentiment that could almost strike a chord in a sitcom about entitled CEOs. Yet, worry still festers among executives who fear volatility under Trump’s potential influence on antitrust cases. What a deliciously ironic twist!
Deal Drought: The Real Crisis
As of February, it had been over two years since a deal exceeding $10 billion was announced globally—hardly the cash rush one would hope for! Although March saw Google swooping in with a $32 billion acquisition of Wiz, April has been quieter than a library full of introverts. Year-to-date, deal numbers have declined by 19%, proving yet again that waiting for “the good old days” of corporate deal-making is akin to chasing a mirage.
