DG FastChannel Acquisition of Vyvx

Janusz Ordover, Jon Orszag, and Glenn Mitchell, supported by a Compass Lexecon team in Los Angeles provided economic analysis for DG FastChannel (“DG”) in their proposed acquisition of Vyvx from Level 3 Communications. DG and Vyvx are the two leading distributors of video advertising to television outlets in the United States. As reflected in written submissions and a presentation to the U.S. Department of Justice, Compass Lexecon performed an economic analysis of entry conditions, including an empirical analysis of minimum viable scale and revenue available to new entrants. These analyses demonstrated that the proposed acquisition would not have an adverse effect on competition. Several weeks after the Compass Lexecon presentation, the DOJ concluded its investigation and allowed the deal to go forward. DG was successfully represented by Marc Williamson, Manfred Gabriel, and Alexi Maltas of Latham & Watkins LLP; Level 3 Communications and Vyvx were successfully represented by Phil Verveer, Barry Nigro, and Ben Jackson of Willkie Farr & Gallagher LLP.