The proposed Comcast-Time Warner Cable merger, announced in February, has set off a wave of activity in the media industry, with AT&T Inc. announcing a $48.5 billion deal for DirecTV that would rival Comcast’s heft in the cable and satellite business. One rationale for the deals is that they would give the cable and satellite groups more leverage in negotiations with entertainment companies and help contain rising programming costs.
In turn, the $80 billion offer that 21st Century Fox made for Time Warner, which was disclosed last week, would restore some leverage to the entertainment groups.
Why worry about the endless series of mergers, consolidations, and acquisitions in media and technology, or the ongoing dominance of vast corporate entities with all the gravity of a black hole? It’ll all work out.