Trump's M&A Maxim

On Thursday morning, as he addressed investors after reporting third-quarter earnings, Warner Bros. Discovery chief David Zaslav voiced optimism that Donald Trump's incoming administration might give way to a climate in which M&A activity can flourish.

"We have an upcoming new administration," Zaslav said. "It’s too early to tell, but it may offer a pace of change and an opportunity for consolidation that may be quite different, that would provide a real positive and accelerated impact on this industry that’s needed."

It goes without saying that Zaslav is far from alone amongst chief executives in the media and technology sectors hoping for some regulatory reprieve. Under President Joe Biden, Federal Trade Commission Chair Lina Khan and Department of Justice antitrust division chief Jonathan Kanter have applied signifiant scrutiny to proposed deals, putting a chill in the air.

That cool climate is likely to warm when Trump takes power in January. Most observers believe the incoming administration will replace regulatory officials currently overseeing antitrust issues with people who are more favorable to the business community, ending the M&A winter that has frozen out even just the possibility of consolidation.

But there is a twist. As CNBC's Jim Cramer said earlier this week, "Companies will no longer have to fear super-strict antitrust scrutiny, so long as they stay on the right side of our mercurial President elect." The latter half of that sentence is crucial.

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