Originally Posted by pwalker8
I would suggest that the reasons that so many publishers have been swallowed up will no longer be applicable and that we will see a lot more of the smaller publishers in the future.
This is very likely.
The main reason small companies got swallowed was because bigger size offered extra resources that benefited distribution or content acquisition (bigger advances).
With ebooks and modern logistics for pbooks extra size doesn't necessarily help distribution or bring anything other than bigger overhead. And since big advances are going to be rarer moving forward, financing is going to be less critical to those authors that choose to stick with traditional publishing.
Moving forward, smaller publishers will be able to serve their authors and readers at least as well, if not better than big publishers. And there will be less pressure to join the big conglomerates.
(Tor, for example has been trying to emulate Baen for years--ebook promotions, DRM, community-building, etc--but was held back by MacMillan policies. If they were still independent they would not have had to fight corporate to run their busness as they saw necessary.)