While media bankers, investors and visual media firms have discussed doing deals with big tech firms, it remains to be seen how cozy they’ll become.
Prospective TV entrants face gatekeepers — major media firms whose content is viewed as essential to the success of Internet-based TV, reports the Wall Street Journal.
Yet that doesn’t mean technology companies will scoop up media companies.
Any tech-sector acquirer would be paying a premium for a business model tied directly to the very TV ecosystem the buyer seeks to disrupt, according to the WSJ.
Also, for Netflix, Amazon or Facebook, who trade at high multiples and hold less cash than say, Apple and Google, any big deal would likely involve using stock, something media shareholders might reject.
