Calls for deregulation in media industry to facilitate mergers, but past deals have resulted in issues.

From CNBC: 2024-07-26 08:46:20

At the Allen & Company Sun Valley Conference, Comcast’s CEO hinted they aren’t in the market to buy Warner Bros. Discovery. He blames government regulations for scaring off potential buyers. Zaslav echoes this sentiment, calling for deregulation to facilitate more mergers and acquisitions in the media industry. The debate centers on whether stringent regulations or lack of interest are driving the lack of acquisitions.

Shari Redstone’s efforts to sell Paramount Global to big players in the media industry, like Starz and AMC Networks, have been met with disinterest. The lack of interest from larger companies could be due to either a lack of desire for the assets or concerns over regulatory obstacles. The future of the media industry hinges on the balance between acquisition opportunities and regulatory challenges.

Zaslav’s view on media industry deregulation is seen as crucial for the survival of legacy media companies. His push for consolidation is based on the belief that only through mergers can these companies remain competitive against tech giants. However, past mergers, like the Time Warner deal, have resulted in heavy debt burdens and poor shareholder returns, casting doubt on the effectiveness of this strategy.



Read more at CNBC: Why deregulation may not unlock media deals for WBD, others