Complex sentence: Drawing a parallel with that phenomenon, Lam speculated that if the current situation of free distribution of newspapers continued, newspapers produced by small corporations might eventually be eliminated and this might result in the undesirable situation of reducing newspaper choices for readers.
Split into simpler sentences: Drawing a parallel with that phenomenon, Lam speculated that if the current situation of free distribution of newspapers continued, newspapers run by small corporations might eventually be eliminated. This might in turn result in the undesirable situation of reducing newspaper choices for readers.