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MERGER ANALYSIS IN THE '90s: THE GUIDELINES AND BEYOND—OVERVIEW
... Several studies have explored the need for integration across different industries (Pitofsky, 1992(Pitofsky, , 1996Porter, 1980Porter, , 1985. Porter (1980Porter ( , 1985 pointed out the needs for corporations to exploit interrelations among related businesses to re-CROSS-INDUSTRY MERGERS duce costs or enhance differentiation. ...
... Porter (1980Porter ( , 1985 pointed out the needs for corporations to exploit interrelations among related businesses to re-CROSS-INDUSTRY MERGERS duce costs or enhance differentiation. Pitofsky (1992Pitofsky ( , 1996 explained further the economic benefits of mergers by the elimination of the operational inefficiency with an emphasis on alliances between different industry sectors in the new global technological innovation market where speed is the key to success. ...
This article analyzes structural changes in the information industries including publishing, broadcasting, film, cable, telephony, software and data processing, and the Internet in the era of convergence before and after 1996. The cross-industry network structure was mapped using annual data on mergers and acquisitions among information industry firms obtained from the Journal of Mergers and Acquisitions. A comparative network analysis of these ownership transactions indicated that the consolidating structure of information industries after 1996 was affected by both deregulation and digitization and that telephone corporations played the most central role in the transformation of the information industries. As well, cable and Internet industries noticeably transformed their industrial relations over this time period.
... 206 The court balked at the suggestion of holding defendants to a demanding standard in proving their entry defense, explaining-apparently without irony-that to require such a "degree of clairvoyance" would be "alien" to Section 7. 207 The tendency of courts of the 1980s and early 90s to uncritically accept entry defenses did not go unnoticed or uncriticized. 208 Changes to the Hori-zontal Merger Guidelines have helped to correct this flawed approach by injecting a bit more rigor into the analysis of defensive time travel theories. 209 But palpable differences in difficulty of proof remain between offensive and defensive implications of time travel. ...
Entry defenses and potential competition doctrine have much in common. Both draw from predictions about future entry. Both demand difficult assessments of entry barriers and incentives. And both suffer from confused thinking today. This Article offers a clarifying perspective. Rather than focus on matters of litigation posture (who wins or loses if an argument is proved) we look to the type of analytical time travel being performed. Corrective entry defenses and actual potential competition theories involve exercises in forward time travel: reasoning about how future entry will impact future competition. Preventative entry defenses and perceived potential competition theories involve exercises in backward time travel: reasoning about how threats of future entry impact current competition. Grouping theories in this way reveals analytical flaws and unprincipled asymmetries in current thinking. It also exposes problems and paradoxes that beset all time travel arguments in antitrust analysis.
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?
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