Time Warner to Acquire NBCU?
May 28, 2008 12:00 PM
God I hope not, although a lot of folks are rooting that such a deal will happen.
Now that Time Warner has spun off its cable systems, it has the deep pockets to go after the NBC Universal portfolio, which would be a perfect fit, making Time Warner the ultimate content play.
It likely would elate General Electric shareholders if the largely industrial company shed its NBCU holdings. Deutsche Bank cut GE’s price target from $35 a share to $33 yesterday.
The bank cited problems with GE Capital, but the rumor mill is rife with the hope that GE will unload NBC after the Summer Olympics.
This is not a good thing. More media consolidation means fewer choices for viewers.
And what would happen to the newsgathering entities involved? Time Warner owns CNN and CNN Headline News, while GE is in the news space with its broadcast network news, local news from its owned-and-operated stations and cable news net MSNBC.
If such an acquisition happened, count on Time Warner to look for synergy within its vast news holdings, which means carnage for reporters and viewers alike.
So, do you think this is a good potential marriage?