Important Opportunities and Risks in M&A Derived from Bundling These Services
Contributed by Willis Towers Watson, a Partner of M&A Leadership Council
Over the last 30 years, mergers and acquisitions have consistently shaped the telecoms, media and technology (TMT) competitive landscape. The current opportunities derived from ‘convergence’ — the bundling of disparate communications, entertainment and utility services in single, customizable packages — will prove to be an important factor in M&A activity for 2016.
Many of the risks associated with convergence are still difficult to anticipate, and the ways in which TMT players choose to adapt to the convergence era will determine whether they can survive long-term. Some of the issues include:
- New business models may fail to find traction with consumers.
- Some promising technologies may be superseded by cheaper or more efficient solutions.
- New services may incur greater regulatory and competitor scrutiny.
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