Hot Topic - News Corporation Fox Corporation Murdoch Family
The great growth of the media sector during the last two decades of the last century has undergone several reversals in this century. There have been spurts, mostly enabled by digital transition, which has equally brought on consolidation and other disruption. By consequence there are many highly experienced media people looking for that next opportunity. And at the top, social distancing accepted, fewer doors are open.
Threats to media freedom are, commonly viewed, the misfortune of countries ruled by autocrats and tyrants. Glancing through the widely quoted indexes, those at the bottom or nearing it are terrible places. Some have been at the nethermost forever. Others just sink, like the frog in boiling water. Speaking out, literally and figuratively, is difficult.
Big mergers and acquisitions - media and otherwise - almost always result in a period of adjustment. This can last years as executives and shareholders begin executing new operating and financial plans. Those taking on debt tend to shed the odd bits. Those with newly found piles of cash tend to circle the wagons. Everything changes, especially the names.
The passage of time brings many favors. Most obviously, there is wisdom. In the post-modern social media age caustic events rise to prominence on momentary outrage. Given time, another outrage rises, cutting oxygen to the former. Wisdom gives understanding that memories can be shortened by a lack of air. The other great favor is spring rain.
Nobody in business, media or otherwise, wants to be the little guy. Hence, all executives are schooled in thinking big. Their bankers tell them to think big because the paper work for a big deal is just the same as a small deal. There is no incentive to be anything but big.
Strong news brands, by and large, have discovered two things recently. Number one is the fragility, to be generous, of advertising revenues, digital and otherwise. Second and just as important is the rise of subscription revenue for big news brands like the New York Times and the Guardian. In addition, though most significantly in the US market, is the Trump Effect, passionate foes and fans of US president Donald Trump are paying to see what they want to see.
The world changes. Some are OK with this, others not so much. Corporate media strategies, too, adapt to the times, some more reluctantly than others. The quest for scale endures. It doesn’t always fix the problem. A toxic brand has few options.
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