|
|
|
|
|
|
Mergers Reshape Media During 2000 December 27, 2000 Mergers reshaped the media business during the year 2000, as media companies became both fewer in number and bigger than ever. Three giant mergers were undertaken during 2000. Viacom merged with CBS, Vivendi acquired Universal, and AOL combined with Time Warner. The result of the mergers is an enormous consolidation media power in a few companies. The $160 billion merger of AOL and Time Warner represents the largest media merger ever. Warner Brothers Studios, Time Warner cable, Turner Broadcasting, CNN, Time Magazine, HBO, and the WB network will be combined with AOL's 26 million member subscriber network--soon to be 25,999,999 when the TruthNews editor gets his DSL hook-up. The new AOL Time Warner company still needs FCC approval, but this should be forthcoming shortly. The merged company is the only big media player with a coherent Internet strategy. However, the FTC's open access requirement will force AOL Time Warner to let outside Internet service providers onto its cable lines for high-speed services. The Viacom Paramount merger produces a media powerhouse that now includes CBS and UPN broadcast networks, MTV cable networks, television stations, several hundred radio stations, King World syndication, Spelling productions, Simon & Schuster Books, and Blockbuster Video. Viacom recently agreed to pay a $3 billion for Black Entertainment Television (BET). The Vivendi/Universal merger was born in December when France's Vivendi bought Seagram, absorbing its Universal Studios and Universal Music entertainment assets and divesting Seagram's wine and spirits business. The combination of Seagram and Vivendi unites Universal Studios, Universal Music (formerly MCA), and theme parks with Vivendi's pay TV giant Canal Plus, Havas publishing, and technology and telecom interests throughout Europe. The company is channeling its resources into Internet and mobile telephones through alliances with European telecommunications companies. Several smaller deals were also announced during 2000. These include the Chicago Tribune's purchase of the Los Angeles Times and Fox parent News Corporation's acquisition of TV station group Chris-Craft. Satellite broadcaster DirecTV is also up for sale by parent Hughes, a subsidiary of General Motors. Outlook for 2001: Look for Steven Spielberg to acquire AOL Time Warner, Viacom/CBS, Vivendi Universal, Disney (parent of ABC), and General Electric (parent of NBC) in the merger of the millennium.
© 2000 TruthNews. All Rights Reserved. And ye shall know the truth, and the truth shall make you free.
|
|
