I've seen this within two big US companies as well (one known then as a big online bookstore, the other one a search company gone horribly wrong - you can imagine.). But to be fair, I dealt most of the time with their european subsidiaries.
I also think that failing business start to fail in the top management level and one level below. It's kind of the "bozo explosion" that Guy Kawasaki describes. If you put one Bozo-Manager into the CTO-position everything will break down:
People just want to present something that looks important, not deliver something that delivers real value to the company. They don't want to spend time to specify a product and take risk, they just delegate it to some poor (external) guys that waste some money.
If they succeed, it was the great manager with his superior skills. If not, the developers sucked, hire some other next time.
Ah...btw.... "Evangelist"/Advisor to the CEO-guys....
One very recent example of a large private media company in Germany: They have a couple of technolgy evangelists reporting to the Owner of the company. They have a very strong personal relationship over tens of years but are just incompetent in all IT matters. They just repeat the current buzzwords ("it must be key/value and loosely coupled!" because Google and Amazon does it.). The problem is: That's true but it's not what the company needs to achieve the project goals. If you have no users, why do you want to scale from the beginning? It's an iterative process, also: premature optimization is the root of all evil.
As most of the media companies/publisheres are private companies (or at least the mayority is still owned by the founding families) they have no external pressure to fix their broken strategies/HR/management.
They can keep losing money in their current business for another 10-15 years until they have to shut down large parts. So they still try to get away with crappy IT products.
Another story:
Internet Explorer 6 is still quite common in the enterprise area in Germany. Why? Because SAP sold crappy technology. They build a big part of the user interface on top of the proprietary MS IE6 platform. Also the customers have very long purchase cycles. Upgrading ERP-software is done every 10 years or so as it's so expensive...
I often say, If we would operate nuclear power plants this way, we would have a Cernobyl/Fukushima-Event per week...