The media mergers happening now are a pure survival play. Margins are collapsing, ad rates are collapsing, audiences are fragmented. Every media company is trying to scale up to survive terrible market conditions.
Reducing audience fragmentation and being able to negotiate better ad rates are the only way to do that. These companies were going to lose all of this money (and more) if they didn't merge. These layoffs are happening regardless.
It's funny because in the tech industry with funding drying up the exact same thing is happening but editorial is so happy to dunk on people they hate that they're too dumb to see the obvious.
Couldn't happen to a nicer bunch of people.
Let’s hope that continued data center debt sell pressure further squeezes Larry.
Oracle is down -50% in the last 12 months so Larry might be feeling the squeeze already. And that's after firing 20k people in the last year or so.
Proof that Techdirt should stay in its lane.
The media mergers happening now are a pure survival play. Margins are collapsing, ad rates are collapsing, audiences are fragmented. Every media company is trying to scale up to survive terrible market conditions.
Reducing audience fragmentation and being able to negotiate better ad rates are the only way to do that. These companies were going to lose all of this money (and more) if they didn't merge. These layoffs are happening regardless.
It's funny because in the tech industry with funding drying up the exact same thing is happening but editorial is so happy to dunk on people they hate that they're too dumb to see the obvious.
M&A accelerates in a down market. QED.