The emperor's clothes

[Commentary] The obstacles in the way of media moguls are especially big.

Advertising is swiftly migrating online, and moving away from media companies as it does so. The Internet retains the power to disintermediate (that is, bypass media firms by bringing products straight to consumers) and de-aggregate (turning albums into tracks and newspapers into articles). Few have worked out a way of making money from putting content online. Nor is it clear that a willingness to spend on media-playing devices is a wholly good sign. Consumers bought lots of iPods in the past few years. But they did not spend much money on music. And there is always the threat that media moguls will go on another buying spree.

The industry has a history of splashy mergers and acquisitions, particularly involving technology outfits, which end up destroying value. So let the content cocks crow. But if they start talking about synergies, run for the hills.