The $85 billion merger between AT&T and Time Warner could kick off a wave of consolidation in the media industry. Fred Katayama reports.
AT&T and Time Warner's $85 billion merger is expected to kick off a new round of consolidation in the media industry as players - worried about getting left behind - work to unite content with distribution: Reuters correspondent David Shepherdson: SOUNDBITE: DAVID SHEPHERDSON, CORRESPONDENT, REUTERS, (ENGLISH) SAYING: "Ultimately what this is really about is two big guys in the room - Google and Facebook - account for almost 75% of all the digital ad revenue. Everyone is worried how do they get a bigger piece of that as more shifts online for traditional media." Some of the other content companies that seem like ripe targets include AMC and Discovery, which both saw their share prices rise on Friday as rumors about AT&T and Time Warner swirled. Comcast's 2011 deal with NBC Universal showed that large content-meets-distribution mergers this big can pass regulatory muster...of course, not without a few concessions.