Goldman’s Posnett Says Rise of Creator Economy Is Driving M&A
(Bloomberg) -- Technology and media companies figuring out how to dominate the new streaming landscape are turning to deals to gain scale, according to Goldman Sachs Group Inc.’s Kim Posnett.
When people can walk around with their “entire content library in their pocket,” Posnett said, that leaves companies “trying to figure out how they become the direct-to-consumer platform that consumers can’t live without.”
Two recent transactions illustrate how tech and media giants are tackling the challenge, said Posnett, Goldman Sachs’s global head of investment banking services and co-head of One Goldman Sachs, at Tuesday’s Bloomberg Deals Summit.
Amazon.com Inc.’s takeover of movie studio Metro-Goldwyn-Mayer shows how quality media assets are a scarce commodity among Silicon Valley giants competing for viewers. AT&T Inc.’s decision to combine its WarnerMedia division with Discovery Inc., meanwhile, is a bet that scale and content will be essential for success in the entertainment industry, Posnett said.
“Anyone can be a merchant now,” Posnett said, adding that consumers have many more media options than they once did. “Anyone can be a content creator. Anyone can be a content distributor.”
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