Yahoo! For Sale?

FOX Chicago news released a story today disscussing the future of the internet sensation Yahoo!. AOL Inc, and various other equity firms are looking into the possibility of buying Yahoo Inc. Among those equity firms are Silver Lake Parnters and Blackstone Group LP.

Perhaps the spark of this interest in Yahoo Inc has been the rise in it's stock. "Shares of Yahoo jumped 5.7 percent to $15.25 on Wednesday in one of the highest volume days of the year." AOL Inc's market is not as large as Yahoo Inc's and the combination of the two could be very profitable for AOL.

This story reminds me of my previos blog about media consolidation. It seems like many media companies are trying to make the merge into larger conglomerates where they control multiple aspects of the industry. This will maximize profit, so I understand the motives of these companies. However, I wonder if this is in the best interest of the public and I wonder if the FCC should look into  what these companies are doing. We do not want these companies to start controlling whole aspects of the industries. We don't want these companies turning into monopolies.

I still consider companies that are trying to control every aspect of thier particular industry a threat, even though that is not the definition of a monopoly. AOL joining with Yahoo is a great idea for AOL, but is it a great idea for the public?

Thanks for reading

Information from: AOL, Private-Equity Firms Explore Offer to buy Yahoo

Ethical Issue? Media Consolidation

This past Sunday, the New York Times covered a story about the merge between Comcast and NBC Universal. Last Fiday, the head of NBC Universal announced that he would be steppinng down, and Comcast almost immediately made moves to purchase the company. The consolidation of the two groups is being reviewed by the FCC, but some wonder if Comcast is trying to "buy" their way to approval. Comcast has spent "tens of millions of dollars on lobbyists, donations, ads and investments" and opponents feel that this excessive spending is Comcast's attempt to get approval. Comcast states that "such steps are common when companies are facing regulatory approval in Washington. It says the merger is pro-competitive and in the public interest, promising fuller access to TV shows, movies and news."



While I love comcast and the services they provide, I wonder how this consolidation will play out. I understand that there is no real way to tell how much money Comcast has actually spent, but we are certain that there IS money being spent. I feel like this is an ethical issue because Comcast should not be trying to "buy" their way to approval from the FCC. The media is supposed to behave in the public interest, and to me using money to get your way is not in the public interest. Those opposed to the merger, such as Frederick Ryan, President of Allbritton Communications makes a strong point, "If it’s such a good deal, and it’s so wonderful for everyone who watches television and is interested in news, why do so many lobbyists have to be hired and why does so much money have to be spent to push this merger through?”

I can understand how this would be a good business move for Comcast. As it stands right now Comcast is soley a cable system, providing the cables to distribute programming. NBC Universal, creates programming that needs to be distributed. If Comcast could create/own the program they distribute, they would be in a cozy situation. Nevertheless, I still feel compelled to wonder if their actions to better the company are ethical in nature.

To read the full story vist Comcast Spends Big in Presssing for Merger