By Webster Tilton Many huge companies are considering mergers to become even larger companies. The vendors and service providers that we turn to for our daily needs are now fewer in number, and individually much bigger and more powerful. In theory this could bring some prices down, which would b...

By Webster Tilton

Many huge companies are considering mergers to become even larger companies. The vendors and service providers that we turn to for our daily needs are now fewer in number, and individually much bigger and more powerful. In theory this could bring some prices down, which would be nice. But an absence of competition tends to raise prices and lower quality. So, who is merging with who and what can we look forward to and or brace ourselves for in the coming months?

Apple is considering buying Netflix:

The Republican tax-reform bill included the famous one-time allowance for companies to return overseas cash to the United States. The widely held belief among investors is that Apple will soon move to buy Netflix with this huge windfall. While this merger is hypothetical at the moment, if it happens it could mean significant changes to what consumers have available to watch, and possibly a change to subscription fees.

Amazon might buy Target:

Amazon has recently bought Whole Foods in order to increase its already massive consumer supply presence, and Target is rumored to be next. If this does indeed happen then there are some interesting implications. For starters, you’ll probably be able to pick up Amazon orders at Target locations (in addition to the various other “Amazon Lockers” and Whole Foods itself). Amazon and Target’s inventory will either become the same thing, or at least highly interchangeable. Their increased purchasing power could also lower prices. But then again Amazon is already such a juggernaut that they do more or less as they please. As the juggernaut gets bigger and bigger it will be harder and harder to restrain them.

Hulu’s fate is uncertain:

Recently, Disney spent $52.4 billion to buy a huge amount of intellectual property and other entertainment assets from 21st Century Fox, including its 30% share of Hulu, to add to Disney’s existing 30% share. Comcast owns 30% and Time Warner owns the remaining 10%, but 60% gives Disney a controlling interest. The immediate implications are that Disney will be calling the shots about what is and what is not available on Hulu. The company’s politics may determine what consumers do and do not get to watch. There are certainly other services: Netflix, Amazon Prime, VUDU, etc.… but switching services (or adding one) can be an expensive inconvenience.

These are just a few of the bigger mergers which may take place soon. The implications are vast and have a strong potential to impact the lives of everyday people. Those who want to know what their service providers are planning are well advised to keep their eyes open, and an ear to the ground.