• Dow Jones, Thursday, October 8, 2009 10:39 PM

Media companies have had more success with break-ups than marriages, and should stay away from more major mergers, say some experts. Talk of media consolidation is intensifying, following Disney's agreement to buy Marvel and reports of talks between Comcast ad NBC Universal, but big media companies should not be tempted.

High cash piles, low valuations and an easier credit market make deals possible, but heartbroken shareholders are wary. "Don't look for the swashbuckling era of the 1990s to come back," says Harold Vogel, former senior analyst for Merrill Lynch. "The mergers that defined this business haven't proven to be terribly productive, and there's a lot of extra caution now."

Since news of Comcast's potential deal for NBCU emerged last week, Comcast shares have slumped. "Comcast does not need content since it has excellent growth prospects with other initiatives. The deal's synergies seem elusive," says Gimme Credit analyst David Novosel.

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