Hi all!
Okay so after researching more information about my article I decided to do this blogpost all about mergers and acquisitions. Upon researching my topic I found that media de-convergence is difficult to find information about it because there are limited sources available about it, in fact, when googling media de-convergence many of the sources were for Jin's article itself. So I decided to dedicate this blog post to mergers and acquisitions, which is what Jin based his research off.
To begin, Investopedia defines mergers and acquisitions (M&As) as "transactions that bring separate companies together to form larger ones." For those of you who are not familiar with M&As the companies who partake in them are often divided and broken up in this process. M&As often make the news because it the process of companies becoming more and more powerful. This is often looked at by the general public because companies they often use are bought out and so by force, they must change companies no matter what.
For the article, Jin specifically looked at M&As that were part of the mega-deals. Many of the M&As that occurred in the media and communication industries are worth millions, if not billions of dollars according to Investopedia.
Two specific M&As that Jin focused on in his article was the merger between AOL Time Warner and Vivendi Universal and the merger between Viacom and CBS. Jin focused on the AOL Time Warner and Vivendi Universal because it was largest M&A of its time, worth $164.7 billion. Viacom and CBS was no laughing matter however, that M&A went for $13.6 billion. Both of those M&As failied and resulted in the spin off the converged companies.
Well, there is some support for Jin's idea.
See you all later,
Kyle
Tuesday, November 12, 2013
Media convergence, within globalization
Hi everyone!
Long time no update since my last blog post. But I thought I'd let you all in on what I've been up to in my Mass Communication course at Hamline University. As of right now we are working on our second critique of a scholarly article. The article I chose to critique was titled Neoliberal restructuring of the global communication system: mergers and acquisitions written by Dal Yon Jin. I chose to chose this article because I am also in a Global Studies class here at Hamline and I found that this article incorporated aspects of each class and connected them, which is really cool!
I will give you all a brief summary to the article I read. The article discusses the communication industry after the creation of both the Telecommunications Act of 1996 and the creation of the World Trade Organization (WTO) in 1995. Both the legislation and this organization were created to open up the markets. After this the media and communication industries saw consolidation, meaning that the more powerful companies bought out the smaller ones so a small group of a few companies owned all the media and communication companies. Jin looked at these mergers and acquisitions of companies and watched their success from 1998 to 2007 and found that 68% percent of the companies he observed failed or de-converged, or split up.
Jin then predicted that now we will see a trend of de-convergence in the media industry, rather than convergence which is still the common trend within media industry. Jin's conclusion is very interesting and different, and I don't know whether or not I agree but he does a wonderful job at presenting his conclusion! I'm going to give you guys some more information on this topic soon!
-Kyle
Long time no update since my last blog post. But I thought I'd let you all in on what I've been up to in my Mass Communication course at Hamline University. As of right now we are working on our second critique of a scholarly article. The article I chose to critique was titled Neoliberal restructuring of the global communication system: mergers and acquisitions written by Dal Yon Jin. I chose to chose this article because I am also in a Global Studies class here at Hamline and I found that this article incorporated aspects of each class and connected them, which is really cool!
I will give you all a brief summary to the article I read. The article discusses the communication industry after the creation of both the Telecommunications Act of 1996 and the creation of the World Trade Organization (WTO) in 1995. Both the legislation and this organization were created to open up the markets. After this the media and communication industries saw consolidation, meaning that the more powerful companies bought out the smaller ones so a small group of a few companies owned all the media and communication companies. Jin looked at these mergers and acquisitions of companies and watched their success from 1998 to 2007 and found that 68% percent of the companies he observed failed or de-converged, or split up.
Jin then predicted that now we will see a trend of de-convergence in the media industry, rather than convergence which is still the common trend within media industry. Jin's conclusion is very interesting and different, and I don't know whether or not I agree but he does a wonderful job at presenting his conclusion! I'm going to give you guys some more information on this topic soon!
-Kyle
Subscribe to:
Posts (Atom)