By Robert MacMillan
NEW YORK (Reuters) - Newspapers and radio networks have been top candidates for buyouts this year as they cope with upheaval in their industries, and speculation is growing that other media sectors will not escape similar scrutiny.
Companies that run TV networks, film studios, music labels and photography agencies are ripe for going private or sales to other media groups, experts and executives told the Reuters Media Summit in New York this week.
"It's hard for me to imagine there hasn't been a sector in this space that hasn't either been looked at or will be looked at," said David Sanderson, head of the global media practice at Bain & Co.
Several factors are driving the speculation. On one level, changes in the way people get their news and entertainment are buffeting traditional media businesses. Upstarts like YouTube and MySpace are forcing the old guard to seek out ways to remain relevant to the young and tech-savvy.
"I've heard so many executives of the companies I cover say 'I'm going to buy the next YouTube,'" said Merrill Lynch analyst Jessica Reif Cohen. "I think there's going to be massive experimentation, and I think it's going to be a very, very, very active deal market."
Older media groups will also likely pool resources. Cohen mentioned film studio DreamWorks Animation SKG Inc. (DWA.N: Quote, Profile, Research, Stock Buzz) as an "obvious acquisition candidate," and said cable network and studio owner Viacom Inc. (VIA.N: Quote, Profile, Research, Stock Buzz)(VIAb.N: Quote, Profile, Research, Stock Buzz) and TV and radio broadcaster CBS Corp. (CBS.N: Quote, Profile, Research, Stock Buzz) could be in the market to buy companies.
She cited speculation that one of the two groups might go private, but doubted media mogul Sumner Redstone, who controls both and split the two this year, was interested in selling.
"With the separation of Viacom and CBS, there are things that each company doesn't have and they used to have, and they want to build up again," Cohen said. Continued...
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