That hasn't worked well historically though has it. Looking at you broadcast media ;)
Also, within tech/new media VCs are the ones feeding the beast, doing the initial investing and the reason for new competition to "spring up". Even if there is an acquisition plan in place, it's not the acquisition itself fueling new competition - it's a for-profit exit from competition.
Broadcast media platforms are not a contestable market, since e.g. broadcast frequencies, cable video capacity etc. are scarce and largely controlled by incumbents. New media is entirely different.
True, because of the way broadcast frequencies were regulated.
However the point remains the same with industry crossover into the new media space - TimeWarner x Verizon merger etc. Consolidation via acquisition and monopolistic behaviors tends to _reduce_ competition, not encourage it.
Also, within tech/new media VCs are the ones feeding the beast, doing the initial investing and the reason for new competition to "spring up". Even if there is an acquisition plan in place, it's not the acquisition itself fueling new competition - it's a for-profit exit from competition.