Merger Monday . . .

MEDIA MARRIAGE: First up, some blockbuster news over the weekend as AT&T announced an agreement to acquire Time Warner for $86B.  This feels like a very synergistic move for both parties.  AT&T gets a major foothold on the content side with networks like HBO and CNN, and the Warner Brothers Studios.  And it’s the perfect hedge to offset AT&T’s flattening broadband and mobile handset business.  As for Time Warner they’ll now get the benefit of AT&T’s fiber optic and satellite piping into 132M households.  The combination of these two companies will be able to compete toe to toe with the Comcast/NBC Universal conglomerate.  Get ready for these next gen media titans to start rumbling over the coming years.  http://www.forbes.com/sites/briansolomon/2016/10/22/att-time-warner-team-up-to-fight-for-the-future-of-tv/#69f8cb326069

NEWSPAPER’S DEATH SPIRAL: Print ad revenues have been on the decline for the last 15 years . . . that’s no surprise to anyone.  Nobody under 45 reads a daily paper, and advertisers have long ago supplanted NP with Digital as their go-to for display based advertising.  But what’s amazing is that the rate of global NP revenue decline appears to be accelerating over the past year – shedding another 9% off last year’s miserable number.  Throughout this free fall NPs are trying to convert to a digital model, with paid subscriptions and native ads embedded within digital content.  But these efforts aren’t able to offset the decline in traditional ad revenue, which is leading industry experts to ponder life without heritage NPs.  Ironically the WSJ has a detailed breakdown of its industry’s own woes.  I also thought the following chart showing the shifting shares of all media types was fairly insightful.  http://www.wsj.com/articles/plummeting-newspaper-ad-revenue-sparks-new-wave-of-changes-1476955801

media-shifts

BECOMING THE BRAND: Andy finally today, check out this Business Insider article on T-Mobile CEO John Legere, whose commitment to transforming T-Mobile’s entire mission and culture was so profound that it actually changed him personally.  T-Mobile’s rise can be traced back to Legere’s strategy to be the “uncarrier” in a highly commoditized telco industry.  The key to doing this was to legitimately walking the walk by embodying the brand he wanted T-Mobile to become.  Not an easy task for a 50-something VC suit, but check out the before and after pictures below.  The work was hard, with a near 24/7 dedication and a relentless commitment to spend time in the field with employees and customers alike.  The results have been impressive though.  From a business standpoint, T-Mobile past Sprint from fourth to third amongst the telcos, and is now threatening AT&T for second place.  On a personal level, Legere has achieved a CEO Rock Star status that’s comparable to Richard Branson.  All this is thanks to a decision to totally commit one’s self to doing things differently (and better) than anyone else.  http://www.businessinsider.com/t-mobile-ceo-john-legere-company-culture-2016-10

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Have a great Monday everyone!

229 thoughts on “Merger Monday . . .

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