Big Media pause deals and fructify on digital for 2007 ?
Posted by Jean Yves Chainon on December 13, 2006 at 1:23 PM
It seems that media giants’ 2007 strategy may put an end to a streak of mergers and gargantuan deals, to instead focus on maximizing existing assets, particularly online media. This has led, among other things, to the establishment of new executives across the board.
CBS Corp. recently tapped Quincy Smith, a Silicon Valley dealmaker, to build up interactive assets. News Corp. placed Peter Levinsohn, a veteran Fox television executive, at the head of MySpace. Philippe Dauman took over as CEO of Viacom Inc. in September, and plans on reaching $500 million in digital business revenue in the year to come.
"The feeling was that we were entering a stage when this was less about deals ... and more about maximizing what we have," News Corp.'s chief operating officer Peter Chernin told a recent meeting of investors.
While online ventures are still the fastest-growing asset of media companies – ZenithOptimedia (ZO) projects a 28% rise in online advertising spending for 2007 – the overall share of Internet advertising revenues will remain limited in comparison to global ad revenue (currently 5.8%, predicted to rise to 7% in 2007 by ZO).
Thus many analysts still foresee a streak of – perhaps smaller – deals for 2007. Readers Digest Association Inc., Clear Channel Communications Inc., and Tribune Co. are among the big names that should be bought out in the year to come.
Source: Yahoo News
"The feeling was that we were entering a stage when this was less about deals ... and more about maximizing what we have," News Corp.'s chief operating officer Peter Chernin told a recent meeting of investors.
While online ventures are still the fastest-growing asset of media companies – ZenithOptimedia (ZO) projects a 28% rise in online advertising spending for 2007 – the overall share of Internet advertising revenues will remain limited in comparison to global ad revenue (currently 5.8%, predicted to rise to 7% in 2007 by ZO).
Thus many analysts still foresee a streak of – perhaps smaller – deals for 2007. Readers Digest Association Inc., Clear Channel Communications Inc., and Tribune Co. are among the big names that should be bought out in the year to come.
Source: Yahoo News
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