Mergers, Acquisitions, and Convergence: The Strategic Alliances of Broadcasting, Cable Television, and Telephone Services

Convergence through mergers and acquisitions seems to provide the best opportunity for companies to accelerate the implementation of new technologies and at the same time capture a developed customer base. This article addresses the following research questions: (a) What is the pattern of mergers and acquisitions in the broadcasting, cable TV, and telephone industries after the 1996 ownership deregulation? (b) What are the initial merger and acquisition strategies for broadcasting, cable TV, and telephone companies on the way to convergence? (c) Is the convergence being carried out by internal (within industry) mergers and acquisitions or cross-segment integrated strategic alliances?