(Reuters) -Warner Bros Discovery (NASDAQ:WBD) said independent directors Steven Miron and Steven Newhouse had resigned from its board on Monday after U.S. antitrust authorities began probing their service as directors of a competing media company.
Miron and Newhouse stepped down after the U.S. Department of Justice (DOJ) informed them it was investigating whether their positions on the boards of Warner Bros Discovery and Charter Communications (O:CHTR) violated Section8 of the Clayton Antitrust Act, according to a Warner Bros statement.
That section prohibits directors from serving on boards of competitors. Both companies sell video directly to consumers.
Miron and Newhouse were each appointed as directors to the company's board after the merger between Discovery Inc and WarnerMedia in April 2022. Neither admitted to any violation, Warner Bros Discovery said in a release.
"We are disappointed to leave the Board, but wish to do the right thing for WBD," Newhouse said in a statement.
The Justice Department said its investigation was part of efforts to unwind or prevent overlaps on the boards of at least two dozen companies across various industries.
Shares of Warner Bros, which said it had reduced the size of its board to 11 directors, fell 1 cent to $8.78 in after-hours trading.