Despite consolidation, content is the key
If you can’t beat them, buy them....This s
eems to be the latest mantra that’s spreading across media industry like wildfire. Just like all industries across the globe reeling under the pressure to consolidate to maintain competitiveness, media industry is by no means an exception. And this is amply visible when a Rupert Murdoch makes an unsolicited and unsuccessful $5billion takeover bid for Dow Jones, Microsoft Corp. looks to buy Yahoo Inc. for $50 billion and Thomson completes a massive $17.2 billion acquisition of Reuters. While news of Microsoft Corp. buying out internet portal Yahoo Inc. has cooled, amid denials from the company, none dare deny that the era of M&As in media has arrived. Companies have a two-fold focus for inorganic expansion – either build subscribers who are willing to pay for information or build mass audiences that can be sold to advertisers at a premium. The mindful media moghul Murdoch expresses his view, “Traditional companies are feeling threatened.” His unsolicited bid for Dow Jones Group (whose balance sheet is not exactly an investor’s delight!) was primarily aimed at tapping the niche of financial news services provided by Dow Jones; and giving it global scale. Ed Atorino, Analyst, Benchmark Company, explains the logic behind Murdoch bidding for Dow Jones, “The point is not the profits and revenues.
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Source : IIPM Editorial, 2008
If you can’t beat them, buy them....This s
eems to be the latest mantra that’s spreading across media industry like wildfire. Just like all industries across the globe reeling under the pressure to consolidate to maintain competitiveness, media industry is by no means an exception. And this is amply visible when a Rupert Murdoch makes an unsolicited and unsuccessful $5billion takeover bid for Dow Jones, Microsoft Corp. looks to buy Yahoo Inc. for $50 billion and Thomson completes a massive $17.2 billion acquisition of Reuters. While news of Microsoft Corp. buying out internet portal Yahoo Inc. has cooled, amid denials from the company, none dare deny that the era of M&As in media has arrived. Companies have a two-fold focus for inorganic expansion – either build subscribers who are willing to pay for information or build mass audiences that can be sold to advertisers at a premium. The mindful media moghul Murdoch expresses his view, “Traditional companies are feeling threatened.” His unsolicited bid for Dow Jones Group (whose balance sheet is not exactly an investor’s delight!) was primarily aimed at tapping the niche of financial news services provided by Dow Jones; and giving it global scale. Ed Atorino, Analyst, Benchmark Company, explains the logic behind Murdoch bidding for Dow Jones, “The point is not the profits and revenues.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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