How AI Dealmakers Are Sidestepping Regulators

Attention: AI startups. What’s the best way to sell your company without the prying eyes of antitrust regulators? Make yourself so small you won’t attract attention!

We’re serious, kind of. We’re hearing that a lesser-known loophole to the rules determining when companies have to notify antitrust regulators about an acquisition is based on the size of a company’s net assets or sales. To sum it up, if it’s below $23.9 million, you might be OK.

Specifically, I’m referring to the rules based on the Hart-Scott-Rodino Act, which governs antitrust reporting.

Right now, antitrust authorities don’t need to be notified if the value of an acquisition is below $119.5 million. If the deal’s value is higher—between $119.5 million and $478 million—the parties involved only have to notify authorities if one company (likely the acquirer) has at least $239 million in annual net sales or total assets and the other company (likely the target) has at least $23.9 million in annual net sales or total assets. (Very specific figures, we know!)