ABSTRACT

This chapter provides an overview of some aspects of the convergence context and concepts. It presents the media sector and the different definitions related to these activities. The chapter describes the main characteristics of the entertainment industry. It explores key trends and developments in Information and Communication Technologies (ICT) industry and summarizes main aspects of the literature on convergence. The chapter describes following aspects: definitions of convergence, industry impact of convergence and implications for firms' strategies. It uses lens of a case study of the quest for board control of a large French company, Vivendi Universal (VU). The chapter shows several empirical studies that companies diversifying into businesses related closely to their core activities were significantly more profitable than those pursuing unrelated diversification. Interlocking directorates represent linkages among corporations created by individuals who sit on two or more corporate boards. Boards of Directors provide a picture of the social organization of business in accordance with mission and strategic aims.