Media Deals: Why They Fail

Jonathan Knee argues that media executives have essentially tried to merge their way to excellence by "convincing the world there is something special and magical about media." Former cable executive and now partner of investment firm InterMedia Partners, Leo Hindery Jr says today's media executives are "mushy" and have "no soul, no vision....Can anybody tell me what the vision at Viacom is today?" On the possibility of a merger between NBC Universal and Comcast, Hindery said "both guys really need it," referring to (NBCU parent) General Electric CEO Jeff Immelt and Comcast CEO Brian Roberts. "Brian has the carryover (from the failed attempt to buy the Walt Disney Co.) and he can't lose another one." That said, Hindrey wouldn't predict whether the deal would be a success. In a closing shot, Hindery told Knee that after writing this book "you are never going to have another investment banking client again." Asked what media company has done a good job, Susan Lyne, the former CEO of Martha Stewart Omnimedia and currently CEO of Gilt Groupe, cast her vote for ESPN, which she says has "stayed true to its mission." But she did note that its one mistake was getting into restaurant business.