How to Think about Modern Media Mergers

Recent proposed mergers in the broadband space have brought attention to the competitive implications of these business deals.

Three broad observations should be kept in mind when evaluating broadband mergers and acquisitions:

1. Mergers and acquisitions can carry real gains for consumers by improving both the company and the dynamics of the relevant market;
2. The rapid development of the broadband industry demands a much higher threshold for evidence that should deter mergers; and
3. The broadband market is quickly evolving and as a result easily identified incumbents steadily face competitive pressures from countless new sources.

As past mergers show, mergers and acquisitions carry real gains for consumers by changing both the company and the dynamics of the market. Ultimately, a merged company will face more effective scrutiny from the market and consumers than from either the Department of Justice or the Federal Communications Commission. This is the essence of regulatory humility and indicative of the current market.