Two of the world’s richest people and most savvy investors are eying the cable industry. Is this a sign that video-on-demand and other such services will be highly profitable or that a wave of consolidation will make the big bigger and stronger?
Yesterday I wrote about Cablevision mulling a possible takeover bid and now this… It seems that consolidation fever is contagious.
The most important question may be why don’t these investors see Verizon and SBC as strong competition? If they did see a serious threat, would they be making these investments? Is it possible they see an acquisition in cable by SBC and Verizon? Would the FCC allow such a merger?
PS: Here is a letter Warren Buffet wrote to TMCnet last summer.