Two directors at Warner Bros. Discovery, Steven Miron and Steven Newhouse, have resigned from their positions following an investigation by the U.S. Department of Justice into a potential antitrust violation. The company announced on Monday that Miron and Newhouse, who were appointed as directors in April 2022 as part of the merger between WarnerMedia and Discovery, were under scrutiny to determine if their presence on the board violated Section 8 of the Clayton Antitrust Act. This particular section prohibits individuals or companies from serving simultaneously on the boards of competing companies.

Steven Miron is the CEO of Advance/Newhouse Partnership, a privately held media company, and also holds a senior executive position at Advance, an investment firm that focuses on media and technology companies. On the other hand, Steven Newhouse serves as the co-president of Advance. Both Miron and Newhouse were scheduled to serve on the Warner Bros. board until 2025. However, they made the decision to voluntarily step down from their positions in response to the DOJ investigation. It is important to note that neither director admitted any wrongdoing in this situation.

Instead of challenging the Department of Justice’s inquiry, Warner Bros. Discovery released a statement indicating that both Miron and Newhouse had chosen to resign immediately from their roles. Newhouse expressed his disappointment at leaving the board but emphasized the importance of doing what is right for the company. The company highlighted that the decision to resign was made in the best interest of Warner Bros. Discovery.

The DOJ mentioned in a statement on Monday that the conflicting company in this situation is Charter, a media company based in Connecticut. Charter, similar to Warner Bros.’ streaming service Max, offers video distribution services. According to the Department of Justice, representatives from Advance held positions on both Warner Bros.’ and Charter’s boards. Deputy Assistant Attorney General Michael Kades from the Justice Department’s Antitrust Division stated that the enforcement of Section 8 of the Clayton Act serves to protect consumers by ensuring that competitors do not collude to limit competition in the marketplace.

The resignations of Steven Miron and Steven Newhouse from the Warner Bros. Discovery board underscore the importance of compliance with antitrust regulations to promote fair competition and protect consumer interests. The company’s decision to address the DOJ’s concerns by voluntarily resigning shows a commitment to upholding ethical standards in corporate governance.

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