Web 2.0 companies are lining up at industry conferences like orphans looking for a new home. During this second round of massive Web industry growth, getting acquired is the new IPO. M&A activity in
general continues to be hot, while the stock market remains tied to volatile energy prices. Sooner or later, a Web 2.0 shakeout is expected. So is further consolidation in the broadcast business, as
companies continue to settle into their digital futures.
The Hollywood Reporter warns media companies not to forget the lessons of the AOL-Time Warner merger. Since there isn't enough room for
everyone at the Internet business table, we will likely see strange new alliances, like EchoStar-AT&T, Google-Lionsgate Entertainment or Comcast-Sprint Nextel. Providers of Internet functions like
search, email and IM will seek closer alignments with media companies providing content as well as ad ties. This strategy did not work when AOL and Time Warner tried it; indeed, AOL became mired in an
old-time media corporate structure that kept the companies from truly integrating.
Read the whole story at The Hollywood Reporter »
