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