4 Factors – Beyond Scale – When Scouting Media M&A Targets | PRO Insight

If scale is all that matters, then some of the highest profile deals of 2021 make little sense

The word of the year in media mergers and acquisitions might be “scale.” From TheWrap’s Acquire or Die panel to the WSJ Tech Live conference, there seems to be a consensus that direct-to-consumer media platforms only survive if they have enough scale, which is a euphemism for content. Although there is some truth to that position, scale alone is fool’s gold. It’s insufficient to build a next-generation media company. 

If scale is all that matters, then some of the highest-profile deals of 2021 make little sense. Why value Reese Witherspoon’s Hello Sunshine at $900M, Lebron James’ SpringHill Co. at $725M or Will Smith’s Westbrook Inc. in the same ballpark if M&A is supposed to maximize content hours per dollar?   

Become a member to read more.

Sam Thompson

Sam Thompson is Senior Director at Progress Partners, a full-service merchant bank providing M&A, capital raise, and SPAC advisory expertise for emerging tech and media companies.