• Hollywood Reporter, Wednesday, December 7, 2005 10:45 AM

The Hollywood Reporter's Diane Mermigas says those who believe big-media stocks are languishing because conglomerates, by their very nature, hide the value of their individual units, are way off-base.  The explanation for the depressed share prices of the media monoliths, argues the veteran industry observer, is more complex. "Just maybe it isn't the mix of media assets, but the way they are being managed.  Just maybe it is an absence of visionary leadership and enterprising strategies necessary to adapt to the change [to a digital broadband world] and make the most of the new opportunities," Mermigas says.  While some of the corporate chieftains she chides are, she acknowledges, skillful at the day-to-day operation of their corporations, they lack the "entrepreneurial insight" it requires to unlock the true potential--and stock valuations--of the huge companies they are charged with leading.

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