Big deals are on the tarmac as Wall Street and the business community wait to see how the presidential election will affect antitrust enforcement.
President Biden has taken an aggressive approach to policing businesses that some called excessive and others praised as a necessary return to checking the power of big business. Dealmakers say they are holding back some deals in hopes of a more lenient approach from the next government.
Doha Mekki is on site and implementing the strategy. She has worked at the Justice Department under three administrations: as a trial attorney during the Obama presidency, in the front office during the Trump presidency, and now as deputy attorney general under Jonathan Kanter.
In a recent interview at the Penn Carey Law Antitrust Association’s annual symposium, DealBook spoke with Mekki about the department’s big wins and losses and what might lie ahead if Biden gets another four years. This interview has been edited and condensed for clarity.
You led the lawsuit that successfully blocked JetBlue’s takeover of Spirit Airlines (The decision is being appealed). In such a case, how do you balance the risk of a company failing because it is too weak on its own versus the risk of a more consolidated industry?
There are an entire doctrine of antitrust law that specifically deals with companies that are not financially viable. And it’s worth noting – and the court certainly noted this – that the company did not make this argument. What I think Spirit has long projected to its shareholders is that they still had the intention to grow.
But a company probably doesn’t want to argue in court that a deal is life or death because it probably doesn’t want to signal that to shareholders.
I’m probably contractually obligated to say that you should always be honest.
Several companies, including JPMorgan Chase, Dropped from Climate Action 100+ this week, citing antitrust concerns. Some Regulatory Authorities Abroad, green initiatives have protected from antitrust enforcement. Should the United States do the same?
We have a first antitrust law that is 130 years old and a Clayton Act that is about 110 years old, and nowhere in that law are we allowed to take non-economic considerations into account. And that’s a good thing, because as an agency we’re not really prepared to make judgments like that.
Would a deal that promises a more diverse board or management be viewed more positively?
It is quite clear to us that we are not in a position to take such considerations into account. To the extent that there is a suspicion that the agencies are valuing this type of business or checking it less closely, the opposite is the case. In fact, it is the companies that represent these social values and want to promote them through their businesses. And we often say, ‘Thanks, but no thanks.’ We can’t take that into account.”
What’s at the top of the agenda if President Biden is re-elected?
This year it will continue as usual. We have research that really excites us. We have possible enforcement actions that we are very excited about.
How Would you rate the success of the last four years?
We revisited the actual law as written by Congress and interpreted by the Supreme Court and appeals courts. We were concerned that the law was actually distracted by political goals and preferences that really cannot be justified by reading the text of the law and the case law.
Is the fact that they exist? fewer offers a sign of success?
Overall, I would be interested to know how much of this relates to antitrust enforcement versus the macro environment.
Anecdotally, the number of antitrust deals has declined – and that’s good for everyone. And it’s also allowed us to pursue stricter codes of conduct, which is a really important part of the agency’s mission.
They also had some high-profile losses. Will this change your willingness to go to trial?
It matters how we lose. I am not aware that we have ever completely lost the law, even in cases like UnitedHealth Group-Change where we had not previously pursued a competitively sensitive information theory of harm. The theory holds up, right? We tend to lose the persuasive power of our facts.
We take this feedback calmly, internalize it and try to present better arguments in the future. I think you see it at Penguin Random House-Simon and Schuster, where we looked at stories about how mergers hurt authors and threaten to hurt their ideas that get published. You see it in the JetBlue spirit.
We would rather win – no doubt about it. But these hard lessons have truly made us better, and we will continue to be better storytellers because that is our obligation to the public. —Lauren Hirsch
IN CASE YOU MISSED IT
Nvidia overtook Alphabet and Amazon, This makes it the third largest publicly traded US company with a market capitalization of around $1.8 trillion. Its shares have risen nearly 50 percent this year, adding about $560 billion to its market value since Jan. 2, as investors bet the company will reap huge profits from developing the chips for artificial intelligence services .
Elon Musk continued his flight from Delaware. The billionaire moved the launch of private company SpaceX to Texas after a Delaware judge invalidated his nearly $56 billion payment from Tesla. It remains unclear whether Tesla itself will be able to make the same journey.
OpenAI has introduced a new video tool called Sora. that generates high-quality videos from text prompts. Investors remain eager to put money into generative AI companies. On Friday, The New York Times reported that OpenAI had struck a deal with Thrive Capital that valued the company at $80 billion or more and nearly tripled its value in less than 10 months.
Why are you still talking about the Dunkin’ commercial?
A week after the Super Bowl, the marketing industry is still buzzing about the ads Dunkin’ ran during the game and its many spinoffs. (In case you’re having a hard time, Ben Affleck tries to impress Jennifer Lopez with a scary song and the help of his pals Matt Damon and Tom Brady.)
Dunkin’ peppered the internet with bonus content, such as footage of Affleck failing to catch a pass from Brady (Dunkin’ told DealBook there was no script) and a collaboration with social media influencer Charli D’Amelio . The brand sells pink and orange tracksuits inspired by Affleck’s and has released the full song “Don’t Dunk Away at My Heart.” In total, the campaign received more than 12 million YouTube views.
“We believe this widespread enthusiasm underscores the ad’s ability to not only capture but also maintain the audience’s attention,” Dunkin’s chief marketing officer Jill Nelson told DealBook in an email, adding, that the company sold more donuts on Valentine’s Day this year than any other day in its history.
The campaign shows how marketing around the big game has changed.
“There is immense power in using the Super Bowl as your core.” Derek Rucker, a professor at Northwestern’s Kellogg School of Management who studies effective advertising, told DealBook. With the average 30-second Super Bowl ad space costing $7 million, brands are looking to launch campaigns on other channels such as social media, in-store promotions and other ads.
It’s easier to start selling a Dunkin’ tracksuit when millions are already involved in the Ben Jennifer conspiracy. “They have a large base of people who understand ‘Phase A’ of the campaign,” Rucker said.
Talents are increasingly playing a role. Artists Equity, the production company founded by Affleck and Damon, handled nearly every aspect of the campaign. (Affleck and Getty Cardinal, the founder of RedBird Capital, spoke at the DealBook conference in 2022, shortly after announcing the company.) When Artists Equity launched, the actors said they wanted to give talent a share of the profits.
The concept behind the Dunkin’ commercial was originally introduced as part of a commercial during the Grammys. Dunkin’ liked the idea so much: “It inspired us to split the narrative into two separate chapters and do a Super Bowl ad,” Nelson said. (In the Grammys commercial, Affleck reveals his desire to be a pop star.)
“Some of the most compelling content didn’t even make it into the final commercials because we reserved it for social media,” Nelson added.
Four things we learned from “supercommunicators.”
What makes some masters at giving feedback, solving problems, or communicating strategies? In “Supercommunicators,” out Tuesday, Charles Duhigg answers that question, drawing on decades of research.
“Supercommunicators aren’t born with special skills — but they have thought more deeply about how conversations happen,” he writes. Here are four lessons from the book:
The right question can show that you are listening. A key to building an emotional connection is “deep questions that delve into values, beliefs, judgments, or experiences,” writes Duhigg. (Think “What’s the best thing about your job?” instead of “Where do you work?”).
You can also demonstrate your understanding by asking questions, summarizing what you heard, and asking if you understood it correctly – a technique called “looping.”
The goal of conflict discussions is understanding, not winning. It helps to demonstrate understanding through “looping”; acknowledge points of agreement; and speak in detail rather than blanket statements.
Effective online discourse requires a new approach. The discourse in Letters and telephone conversations have evolved. “We have developed norms and almost unconscious behaviors – the tone in our voice when we answer the phone; Saying goodbye to a letter in which we signal our affection to the reader – this makes communication easier,” writes Duhigg.
He hopes that similar norms will develop in online communication, such as being particularly polite and avoiding sarcasm and criticism.
Difficult conversations need structure. Duhigg suggests setting guidelines; Share your goals for the conversation and ask others to share theirs. and admitting discomfort is expected, and that’s okay.
Quiz: Startups wanted
The partners at Y Combinator, the startup accelerator that spawned Airbnb, Dropbox and DoorDash, have released their latest “request for startups,” a wish list of the types of companies they want to invest in.
Which of these startup categories didn’t make the list?
You will find the answer at the end of this newsletter.
Sarah Kessler contributed reporting.
Thank you for reading! I’ll see you on monday.
We appreciate your feedback. Please email your thoughts and suggestions to dealbook@nytimes.com.
Quiz answer: B
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2024-02-17 13:00:04
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