Despite consolidation, content is the key

IIPM Publication

If you can’t beat them, buy them. ...This seems 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 $5 billion 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.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Reuters getting a new owner

IIPM BEST B-SCHOOL

International wire agency Reuters is being sold to Thomson Corp., the Canadian publisher, for around $17.2 billion. While the Thomson and Reuters news and financial businesses will be called Reuters, the other Thomson businesses are going to be renamed Thomson-Reuters Professional. This signals the formation of the world’s biggest financial news and data service. Thomson-Reuters will have revenues of a whopping $12 billion and close to 50,0000 employees worldwide. This entity will command around 34% of the financial information market; Bloomberg LP, that has 33%, will soon slip to second place. Tom Glocer, the Reuters Group Chief Executive, will now become the Chief Executive Officer of Thomson- Reuters “The combination of these two great businesses will create an exceptional global information company guided by the Reuters Trust Principles,” Tom Glocer said in the statement.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative