Whole Network Most Recent TOP10 Announcements DTV Transition Act Internet TV IPTV

 

Whether to Build or Buy, That Is the Question

Filed in archive by martino on June 28, 2006

Whether to Build or Buy, That Is the Question
Should traditional media companies build or to buy digital media properties? AdAge asked that question, too.

Viacom's first priority is to build, according to its chief financial officer, Michael Dolan. "There's so much money available, and looking for the deals that the day of a surprise ... is gone," Mr. Dolan said. He said his company's free cash flow priority is to feed internal projects first, acquire second and return to shareholders third. The return on good internal products "is phenomenal," he said.

He cited MTV Networks' broadband product as an example of how the company built instead of bought. Overdrive was built with an investment of $5 million over eight months by a group of young people in the company, adding that the "market value of that in today's marketplace is huge and it was done on a shoestring."

Scott Kurnit, a venture capitalist and founder of About.com (now part of The New York Times Co.), disagreed with the build first, buy second philosophylinks. "Big media shouldn't build but should buy," he said. "They can't compete with entrepreneurs who will do it at two times the speed."

Neal Goldman, CEO of Inform.com, said the "speed with which young scrappy companies can build" is leading to a wealth of acquisitions in the $25 million to $50 million range.

Buy versus build. That is a question I have always had to answer to investors and board of directors. It is now front and center at large media companies. What do you think is the right answer?


Advertisement


Permalink: Whether to Build or Buy, That Is the Question
Tags: business  strategy  buy  versus  build  digital  whether+build  digital+shot 

Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/25977



Advertisement


Advertisement


CW ToolbarInstall
RSSrss   | See all blog subscribe options
Googlegoogle   |   What is RSS?
Yahoo!yahoo
AddthisAddThis Feed Button
BloglinesBloglines
Newsletter
Advertisement - Book yours here.

Use our search feature to look for other interesting posts

Just this blog Whole network
Advertisement -
Book yours here..


 
Advertisement
Book yours here.



  • Testimonials

  • 'I can't wait to see this blog develop -- I'm sure you have a lot of great stuff to share with us.'
  • Other blogs in the same channel in the Creative Weblogging Network

Advertisement -
Book yours here..






Advertisement - Book yours here..
 
Tagcloud: Announcements Blu-Ray DVD Blu-ray DVD versus HD DVD Business Trends Channels DTV Transition Act DVD Media HDTV iDTV integrated Digital Televisions iDTV Interactive Digital Television Internet TV IPTV Life Digitized Mobile Video Projection Televisions Statistics TiVo DVR Video on Demand Video Series