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But the New York market is the most lucrative in the nation, and Cablevision's geographic focus has let it develop a kind of vertical integration that is unprecedented in the cable business, allowing for profitable synergies.
The all-stock deal intends to produce profitable synergies between traditional and new media.
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That's why I'm skeptical of the various theories about how The Post's new genius owner might invent some new way to deliver content or bundle news or otherwise achieve a profitable synergy between his newspaper and Amazon.
On the side, Ms. Hook also built a small but profitable example of corporate synergy.
An extension to this model and Werden and Froeb (1998) but allowing for entry is Spector (2003) who finds that profitable mergers with no technological synergies are harmful for consumers regardless of fixed costs or entry conditions.
Distribution is becoming an expensive challenge and tie ups with companies like Baidu or Tencent can represent massive synergies and upsides for good, profitable Web companies having a hard time breaking out into the mass market.
"Ideally you should be bundling products that have a positive synergy together," Kumar says, "but what we have shown here is that even when synergy is negative, bundling can be profitable.
It is the most profitable of the four former sectors, but has the fewest synergies with the electrification-automation-digitisation chain.
"They just excel at creating a synergy in these very complex projects, with government and private developers, to create very economically profitable, and also socially profitable, projects," said Mr. Durst, noting that the projects Mr. Rose takes on run a higher risk of not panning out.
Including its profitable semiconductors and components segment, Sony's electronics division lost $1.4 billion overall.Sony has long struggled to find synergy between its content- and hardware-producing arms.
No doubt startups in the same profitable-but-needs-more-distribution phase will be watching this partnership closely to see if those always promised synergies are actually there.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com