Penguin Random House, Simon & Schuster face scrutiny over .2 billion publishing merger

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Welcome back to yahoo finance live a pending federal judge’s decision could derail or green light a 2.2 billion dollar merger yahoo finances alexis keenan has the latest on that and more which merger are we talking about and what’s going on right so many to keep track of so this is the one that was a three-week trial that ended on friday between the justice

Department and on the other hand defending the case penguin random house and simon schuster those two companies want to merge in that 2.2 billion deal justice department says no that it would frustrate they think the market for top selling books now during the trial the companies and the justice department really narrowed down the heart of the case here and the

Market specifically is what has become the market for books where authors are getting advances of 250 000 or more so that’s the part where they say that there would be too much consolidation and that other companies would not be able to compete here so a big one that we’re watching there are some pre-trial uh post-trial briefs that are being filed after which the

Judge will make a decision in this case it’s not a jury trial here all right definitely one more watching let’s shift gears over to tesla and apparently some we don’t talk a lot about kind of uh musical chairs happening in a legal department of a major company but it’s important to note that tesla obviously dealing with a lot of things with elon musk what exactly

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Is happening there right so bloomberg put out a report saying that the top legal officer really at the company who’s not its general counsel his name is david searle and they said that he had left several weeks ago approximately but then tesla put out a tweet from its official twitter account saying no that’s not the case he has not left so there’s a dispute there

Nonetheless you mentioned the musical chairs the problem here to some shareholders uh is that the chairs necessarily aren’t being refilled as i mentioned there’s no general counsel at the company that gives some shareholders pause thinking that there should be a c-suite executive with that title uh especially as tesla has a lot of different legal fronts that it

Is both defending and pursuing on a regular basis so we’re watching here to see if that is actually the case that uh he’s really left the company searle or whether or not there’s more to be learned in that department yeah just another notch in the saga here um last question here shifting from kind of companies to obviously politics a lot of attention still on the

Fbi’s mar-a-lago affidavit of the president uh obviously there’s so much chatter about whether or not what is the risk associated with unsealing that we’ve heard representative adam shift kind of come out over the weekend say it could be something that the public interest is definitely interested in even despite those risks what’s the latest on the affidavit so

What’s happening is that the parties have until thursday really the justice department has until thursday to put in front of this judge who granted the search warrant in the first place right so he’s the one that knows the underlying facts he knows what’s in those documents they have to present a redacted version of the search warrant affidavit and he’s going to

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Decide whether these companies that you’re looking at here will get their day to say yes there should be some more disclosure here the motion that he’s deciding was brought by these news organizations saying that there’s a strong on public interest in disclosing the information in that affidavit and that’s where all the meat on the bones is right that’s where the

Government is making its case to say why the judge should have allowed the government to go in and search mar-a-lago a lot of information there though the government says is sensitive like witnesses information their identities they say that those parties should be able to remain private there’s a strong interest there so this is really a balancing test that the

Judge is going to be putting forth to decide whether or not we’re going to learn more about what is in those affidavits it will be extensive amount of information in there maybe we’ll see a document with some redactions that will lead us to uh you know some different some some additional information but the judge has just put out his reasoning behind his decision

Saying that there’s a strong compelling interest that the sources and the methods of the government’s investigation do be kept under seal so he’s going to have to balance those out we’ll see where we can see how many redactions there are if they’re if that is indeed the case finances alexis keenan thanks so much appreciate it

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Penguin Random House, Simon & Schuster face scrutiny over $2.2 billion publishing merger By Yahoo Finance

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