Imagine if two battling behemoths like King Kong and Godzilla decided to join forces. Talk about a knockout combination. That's how the entertainment industry reacted last week to the disclosure that Japan's Matsushita Electric Industrial, the world's largest maker of consumer electronics, is negotiating to buy MCA, the American show-business giant, in a deal that could be worth more than $7 billion. The acquisition would represent an even more titanic version of the hardware-meets-software combination pioneered by Matsushita's rival Sony, which bought CBS Records for $2 billion in 1988 and Columbia Pictures for $3.4 billion in 1989.
MCA (1989 revenues: $3.4...
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