Deal Critics Call Comcast/NBCU Pre-Merger Staff Moves Premature
Some groups critical of the proposed Comcast/NBC Universal joint venture are also criticizing pre-merger personnel moves by the two companies in anticipation that the deal will be approved by regulators.
"It seems a bit hasty for Comcast to start measuring the drapes given that it has not yet won approval to acquire NBCU from either the DOJ or the FCC," said Free Press Policy Counsel Corie Wright. "It is especially premature given that, by all accounts, both those agencies appear to have significant concerns about the deal, including the combined-company's ability to squash emerging competition in the online video market."
"Our view is that merger applicants make personnel changes like this at their peril," said Public Knowledge spokesman Art Brodsky, "and these changes shouldn't be used to try to force the Commission to alter its review process.... We wouldn't want the commission to speed up its processes, for example, based on the idea that personnel changes are being made."
A source familiar with Comcast's moves said it was pretty common to announce a leadership team before a deal closes so it would be ready to go, adding that was particularly the case in creative industries so that people outside the company will know who they need to be dealing with when contracts come up for renewal or pilots need to be greenlighted.
Deal Critics Call Comcast/NBCU Pre-Merger Staff Moves Premature