Matt Sheehan Comments on Digital Media Mergers
Matt Sheehan, managing director of the University of Florida College of Journalism and Communications Center for Public Interest Communications, is quoted in “No End in Sight for Digital Media Merger Madness Following Vice, Vox and Group Nine Deals” published in TheWrap on Oct. 13.
“These moves are emblematic of the challenges in digital media,” said Sheehan. “The value has never been in the content, but rather the platform, and platforms become more valuable the bigger they become. I think we’re going to see more of these mashups as companies try to grow, and those who aren’t making these moves now are probably deep in discovery to what moves they can make so they aren’t left behind.”
Sheehan adds, “I’d attribute the mergers to what I see as a revenue rake-up. More and more of these companies, attempting to compete with the social and search behemoths for dwindling advertising scraps, need to build the most robust psychographic-based audience networks they can. The moves I’ve seen in the last few weeks seem to signal just that. Investors love growth and combining these revenue streams supplement and strengthen the portfolios these firms can sell.”