• by Wayne Friedman , Staff Writer, November 12, 2024

The promise of mega media mergers is in the air -- thanks to expected free-market potential of the new incoming executive branch of the U.S. government.

But will this really change the fortunes of legacy TV media companies mired in declining businesses that they still need currently?

Perhaps the likes of Paramount Global, Warner Bros. Discovery, Comcast (NBCUniversal) and Walt Disney needed even better guidance in developing newer strategies against digital-first companies -- because many missed some initial opportunities from the jump.

Heavy potential regulation on traditional media businesses was not a restriction for companies to avoid starting up a Netflix-like business in the early 2000s -- or a Google or a Facebook.

Strong balance sheets from digital-first and other big tech companies could now gobble up pieces or entire businesses of legacy media -- TV networks, movie and TV production studios. But why? Old-line businesses were never in their future business sights to begin with.

And consider that some of this may be a one-sided affair between the new and old.

Regulation -- even with the new administration -- would still be around. President-elect Trump is likely to continue pursuing antitrust cases against big tech companies -- possibly against Google. He could be considering regulation against bigger social-media platforms, to help the little guys. Would his stake in Truth Social benefit?

Breaking up major media companies in some mass re-configuration of the traditional media industry -- say, with linear TV networks -- will come at a price and might mean massive layoffs. In addition, massive bundling of new streaming platforms might evolve with just a few media companies in control.

Consumers -- and Trump supporters -- have complained about paying $6 for a dozen eggs. What if those consumers would also need to pay $100 for a dozen streamers?

Perhaps the key area where big mergers and deregulation will occur is with local TV stations.

Perry Sook, chief executive officer of Nexstar Media Group, says its biggest competition comes from big technology companies that look to control all screens -- from home screen TV to mobile phones to desktops/laptops.

He says little change to his company’s local TV business has occurred since regulations over TV ownership and control were updated in 2004.

TV network-focused media companies do not have the same reach, appeal and effect they once had to this old-line business.

While mergers -- and perhaps big partnerships -- would help ameliorate declining revenues and profitability, media companies need better long-term strategy for new innovations in consumer video entertainment content.

If not, then ask if they -- and their shareholders -- can really cash out.