Abstract In recent years, the case of business giants acquiring media, especially new media, is not uncommon. Recently, it was reported that Alibaba Group Chairman Ma Yun will invest in the new media "Thrive". Why do business giants favor the media industry? Its right...
In recent years, the case of business giants acquiring media, especially new media, is not uncommon. Recently, it was reported that Alibaba Group Chairman Ma Yun will invest in the new media "Thrive". Why do business giants favor the media industry? What impact will it have on the future development of the media? Capital entry brings industry changes
Recently, according to foreign media reports, Arianna Huffington, the founder of the famous American news blog website Huffington Post, will create a new media company called "Thrive", focusing on providing health and wellness content, including Business models such as advertising sponsored content, hosting meetings, and subscription-based corporate health plans. It is reported that Ma Yun has promised to invest in the company.
In fact, this is not the first time Ma Yun has been interested in the media. In November last year, Ma Yun’s purchase of the South China Morning Post had stirred up a pool of spring public opinion. From 2009, Ma Yun started from the “media kingdom†outside the e-commerce platform. Alibaba has already published dozens of media mergers or acquisitions, including 2015, Alibaba’s share of 1.2 billion yuan. A financial media also includes investment in emerging Internet media such as Tiger Sniffing Network and 36氪. It also includes social media such as Sina Weibo, Huazhong Media, Youku Tudou and other video websites. Today, Alibaba has successfully constructed a complete media cluster.
In addition to Ma Yun, many business people are also keen on media mergers and acquisitions. In July last year, Wang Dalin’s Wanda acquisition of the Swiss Infront Sports Media Group officially completed the transaction. Swiss Infront is one of the top five sports marketing companies in the world and the world's largest sports TV content production and broadcasting company. This means that Wanda has mastered the world's top sports media group.
In addition, Fosun and the Southern Newspaper Group jointly established the "Guangdong 21st Century Publishing Service Company", and Evergrande's acquisition of Hong Kong's New Media Group also showed great interest from the business giants in the media industry.
Market entry is also a "discourse" exit
Chinese capital has long been passionate about the media industry. For large consortia, finding the entry into the market and the export of the right to speak is probably the main reason for its enthusiasm for the media industry.
Taking Alibaba as an example, some analysts pointed out that in BAT (abbreviation of Baidu, Ali, and Tencent), Tencent and Baidu all have their own entrances in the news content field - Tencent News and Baidu News. Ali, which started out as an e-commerce company, has a gap in the media. Therefore, its series of acquisitions to the media industry is partly to fill the shortcomings in the business ecosystem. Wanda’s acquisition of Infront Sports is also carried out under this logic. Infront is one of the best sports TV content production companies in the world, and is also responsible for the exclusive sale of FIFA football matches in 26 countries and regions in Asia. This means that Wanda can quickly find the entrance to the world sports industry through this acquisition and achieve rapid penetration.
Strengthening the right to speak is also the reason for the frequent shots of strong capital. The investment of the consortium capital in the media is largely concentrated in the financial media. At present, several domestic financial media - 21st Century Media, Caixin Media, First Financial Economics, Economic Observer, etc. have all received investment from major domestic consortia, which reflects the fact that the consortium hopes to take the initiative in financial public opinion. Consideration. And Ma Yun recruits horses around the world, it is more like "the next big game." As Tango co-founder and CEO Yuri Raz said, Ma Yun has invested in the US instant messaging software Tango and strategic investment in the US photo sharing software Snapchat, which is intended to win the right to speak from the mainstream social circles in Europe and America.
Seize the opportunity not to forget the crisis
What is the impact of the marriage between industry giants and the media on the prospects of the media industry?
Capital never buys and sells money, but the media has never been an industry that makes money. Therefore, the combination of the two must produce "chemical action" rather than "physical effect."
From an industry perspective, many media are unable to support themselves in the absence of financial resources and effective profitability models, while industry giants often have diversified businesses and have sufficient funds and mature business models. From this perspective, the combination of the two can be said to be complementary. There are many successful cases, such as Amazon's acquisition of the Washington Post and its integration into the Kindle content system. While Ali invested in the First Financial News, it focused on integrating the data of both parties and developing new data products to open up the market.
However, the media has its own unique ideological attributes, which requires the media to maintain a relatively independent existence of capital. After incorporating it into the business structure of the industry giant, the media may be gradually marginalized and even become a marketing tool and advertising channel for enterprises. In addition, the media's operating mechanism and management culture have their own unique characteristics. Whether the media can “seamlessly connect†with large capital and realize transformation and upgrading remains to be seen.
Therefore, for the media entering the era of “big capitalâ€, this is not only a favorable opportunity to realize the transformation and development, but also a crisis of losing its core value and being marginalized by the consortium. How to seize the opportunity and avoid the crisis is a problem that both the media and the media must consider at the moment.
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