Market Reactions to Merger,Acquisition, and Divestiture Announcements in the Media Industries

There has been extensive restructuring in the media industries in recent times. This article examines the effects of large media restructuring transactions on the value of firms engaging in such transactions. It considers all media restructuring transactions with a value of over $1 billion between 1997 and 2008—a time period that included 1 of the largest waves of mergers and acquisitions (M&A) activity in industrial history, and was marked in media by transformative changes in the industry due to digital technology and the loosening of ownership restrictions under the Telecommunications Act of 1996 Telecommunications Act of 1996. (1996). Pub. LA. No. 104–104, 110 Stat. 56.  [Google Scholar]. Over that time period, 57 M&A transactions with a total value of $675 billion and 65 divestitures with a total value of $338 billion were identified. This article employs event-study methodology to calibrate the impact of these restructurings on firm value. Over time, the market was cautious about the ability of media firms to launch successful mergers or acquisitions, with losses for the media acquirers larger than those in cross-industry studies. This is even more pronounced when the acquirer is a non-media firm. Alternatively, divestitures yield positive results for both buyers and sellers. Recognizing the impact that restructuring has on firms, this work provides insights for understanding the market evaluation of future restructuring transactions.     

出版传媒集团进行内部资产重组的思考

对企业集团内部资产重组进行理论探讨,提出内部资产重组是企业外部扩张的递进阶段,在企业改革推进中具有重要作用,结合出版传媒集团当前的发展趋势,提出出版传媒集团在关注新增投资及兼并收购之外,应关注内部资产重组问题。对已上市出版传媒集团资产配置的现状和效率进行考察,回顾英国培生集团的投资并购与资产剥离的实施情况,提出中国出版传媒集团可以利用资产—利润结构的均衡性原则,采用多种方式进行内部资产重组。     

Composition of board of directors of major media corporations

This article examines major determinants of interlocking directorates of media companies by applying resource dependency theory. The study found that firms with greater dependence upon advertisers and financial institutions have more representatives of those interests on their boards. Diversified media companies were found to have more attorneys and interlocking directorships with competing firms.     

Characteristics of Corporate Boards in Single-Industry and Conglomerate Media Companies

Although there has been much research into corporate governance generally, little attention has been focused specifically on issues in media companies. The question is further complicated by the increasing frequency with which media enterprises that have traditionally operated within the industrial context of a specific medium are becoming business lines for media conglomerates and must compete for resources and strategic attention from a board more concerned with bottom-line profitability than with traditional media industry norms. This study examines board compositions of 21 firms with leadership positions in 1 or more traditional mass media industries and compares governance structure and results for those firms that are concentrated in 1 media segment to those that operate multiple media segments. Relations between skills sets associated with different categories of board members (legal, finance, consumer/marketing, service, academic, and other), management influence, and other board demographics to the creation of shareholder value were identified based on financial measures of market value, earnings per share, and dividend levels. The relations between board characteristics and strategic measures of capital reinvestment, asset sales, and acquisitions were also examined. A number of significant differences were identified between single-industry and conglomerate firms in these dimensions.     

Management of core resources: The case of media enterprises

Abstract

For media firms, convergence is a strategy for value creation. However, the concept of convergence belongs to a field of media research and practice that still is in a pre‐paradigmatic stage (Kuhn). The aim of the analysis is to contribute to the process towards “normal science,”; where the paradox of conceptualisation is solved and the outcome is guiding research as well as business development. The article introduces the concept of “value creation convergence,”; and discusses its potential as a sixth dimension of the convergence concept in relation to Miège's typology of traditional media firms (editorial, press, and flow) and Stabell &; Fjeldstad's typology of value creation configurations (chain, shop, and network).     

Shaping the Corporate Perimeter in a Changing Media Industry

ABSTRACT

A constant theme in strategic media management literature is the transformational impact that digital media technologies and deregulation have had on shaping media firms’ corporate strategies. Whilst the role of corporate strategy is to encapsulate a firm’s long-term direction and scope of activities, it will also give a strong indication of how the firm will compete and be positioned in an industry. However, the transformative effects of a highly technological media environment have changed our traditional view of how the media industry is defined, and so developing a strategic recipe for competing in an ill-defined industry becomes more challenging. This paper examines a single media firm’s corporate strategy and perimeter and considers this in the context of a changing media industry. The paper takes a practice-led approach by undertaking a longitudinal analysis of a firm’s acquisition and divestment activities in order to understand its corporate perimeter and by implication the industry or industries where it competes. We argue that by exploring a media firm’s corporate strategy and perimeter over time, scholars will not only be able to better understand the dynamics of media practice and strategy, but also gain an insight into the changing nature of the media industry. The paper concludes that the 'five forces framework' on industry structure, profitability and attractiveness remains a relevant form of strategic analysis that can help media management researchers to conceptualize and understand the evolution of media firm corporate perimeter and the industries in which they compete.     

The bigger,the better? Measuring the financial health of media firms

Abstract

This study examined the degrees of product diversification of media conglomerates since the Telecommunications Act of 1996 and tested the impact of product diversification of the firms on their financial health. The strategy of related product diversification enables firms to gain market power and synergy effect, then improves financial performance. Based on that assumption, for a sample of 26 media firms from 1996 to 2002, this study conducted a regression analysis to test the hypotheses. The results showed two contradictory curvilinear models. First, revenue, EBITDA and sales growth rates revealed a U‐shaped relationship with diversification. That is, performance decreased as firms shifted from concentrated business strategies to related diversification, but performance increased as firms changed from related diversification to unrelated diversification. On the other hand, financial efficiency variables measuring management effectiveness or profitability (ROS, ROA and ROE) and stock market evaluation (earnings per share) showed an inverted U‐shape relationship. Thus, the unrelated diversification led to a decrease in financial efficiency.     

Value Creation in the Publishing Industry: The Impact of Acquiring IT Services Firms Between 2002 and 2007

With the presence of online, digital content and new services for manipulating and searching it, printing and publishing firms may experience technological uncertainty and risk and diminishing profitability. Mergers and acquisitions are approaches for dealing with the current technology and market changes that are underway in the printing and publishing industry. Using an event study methodology and a sample of 60 U.S. printing and publishing firms, this study investigates the value creation of acquiring information technology (IT) services firms. The study's findings reveal that printing and publishing firms experience significant increases in their market values as a result of acquiring IT services firms. In fact, non-newspaper firms realize the largest increases in market value. The study's findings should help academicians and practitioners understand the kinds of strategic acquisitions from which printing and publishing firms are most likely to benefit.     

Broadcast advertising by candidates for the Michigan legislature: 1970

There's been a good deal of attention given in recent years to the effects of media on political campaigns, but most of that concern has centered on Presidential, Senate, and House contests. The following article, however, focuses in on the grass‐roots level by examining broadcast media use by candidates for the Michigan State legislature in the off‐year elections of 1970. Using state records and a survey of candidates, the author has constructed a picture of radio‐TV campaigning suggesting a wide variety of use, interest in further use, but limitations on usage by what candidates term excessive cost of broadcast time. This concern over expense overrides, to some extent, the recognized impact of media which in this survey correlates strongly with election success. The study is taken from the author's master's thesis written at Indiana State University.     

Time pressure: An unexamined issue in organizational newcomers' role development

Although the impact of time pressure on integrative problem solving has been widely explored in traditional negotiation research, little attention has been paid to its effect as organizational newcomers negotiate and coordinate work role expectations with supervisors. This study examines the effect of time pressure on three integrative communication dimensions of supervisory role negotiations: directness, elaboration, and mutual concessions. One hundred seventy employed college undergraduates completed survey items pertaining to recalled supervisory discussions of role expectations. Consistent with the hypotheses, time pressure had a significant positive effect on each of the communicative dimensions of the recalled negotiation.     

A refined view of download time impacts on e‐consumer attitudes and patronage intentions toward e‐retailers

Abstract

The following paper is a case study analysis of the Sony Corporation; a leading transnational media corporation in the production and sale of consumer electronics, music and film entertainment and videogame technology. There are two main parts to this study. Part I, examines the history and development of the Sony Corporation. This paper argues that the business strategies and corporate culture of a company are often a direct reflection of the person (or persons) who were responsible for developing the organization and its business mission. Part II. examines the Sony Corporation from the standpoint of business strategy. Special attention is given to the subject of organizational culture and strategic decision‐making. A second argument of this paper is that while Sony is a transnational media corporation, the organization is decidedly Japanese in its business values. The significance of this research lies in its revelations concerning the complex changes facing a company that was once historically Japanese in its origins but is tecoming increasingly transnational ïn scope and operations.     

The good,the bad,and the ugly: Financial markets and the demise of Canada's Southam newspapers

Abstract

The impact of financial markets on media management practices is apparent in Canada, where public trading in newspaper company shares has contributed significantly to concentrated press ownership. Fluctuations in newspaper share values have often shaped firm strategies as a result. This paper presents the Southam newspaper chain as a case study of the impact of financial markets on newspaper management practices. Historical analysis is used to show how Canada's oldest and largest newspaper chain, which was known for its commitment to quality journalism and for allowing its local publishers editorial independence, made a fateful decision when it went “public”; with a share issue in 1945. The increasingly widespread ownership of its stock led to Southam's gradual takeover in 1996 by Hollinger Inc., which cut costs and reduced staff chain‐wide. Sale of the Southam newspapers in 2000 to CanWest Global Communications has seen editorial control centralized at company headquarters and partisan support shown for the ruling federal Liberal party, contrary to Southam's founding principles. As a result, the Canadian Senate began hearings into the media in 2003, bringing the possibility of government regulation to reverse the impact of financial markets on the management of media firms there.     

Starting up the News: The Impact of Venture Capital on the Digital News Media Ecosystem

ABSTRACT

Venture capital funding is an increasingly common yet understudied management model in the rapidly changing market of news media. Drawing on scholarship in media management and entrepreneurship, this study applies a community ecology framework to analyze the relationship between venture capital funding and digital news media firms. In doing so, this work explores the interaction between legacy news media firms and new entrants as they struggle for scarce resources and seek to grow in the face of rapid change. A dataset tracking funding activity of legacy and startup news media firms is used to analyze resource allocation within the digital news media ecosystem. Results of the analyses provide insights for news media management by furthering understanding regarding venture capital funding models and the generative mechanisms that help drive growth. Specifically, findings highlight the importance of cross-sector engagement and the tension between firm age and position for growth in the digital news media ecosystem.     

Presidential silence,C. Everett Koop,and the surgeon general's report on AIDS

On October 22, 1986, C. Everett Koop released the Surgeon General's Report on Acquired Immune Deficiency Syndrome. This essay examines that report as a rhetorical watershed in the national dialogue about AIDS. We suggest that this report—and the media attention that attended it—dramatically shifted the socio‐political environment concerning AIDS and contextual‐izfd Reagan's silence concerning the disease as a lack of presidential leadership on the issue.     

Historypin and Pinterest for Digital Collections: Measuring the Impact of Image-Based Social Tools on Discovery and Access

ABSTRACT

For the past several years, the adoption of social media platforms has increased significantly as academic libraries have emphasized the importance of finding new ways to promote collections and services. Recently, many libraries have embraced Historypin and Pinterest because of their specific focus on images. This article examines the impact of these platforms on digital libraries and explains how each affects the discovery and access of digital collections.     

Sharing of retracted COVID-19 articles: an altmetric study

Objective:This study examines the extent to which retracted articles pertaining to COVID-19 have been shared via social and mass media based on altmetric scores.Methods:Seventy-one retracted articles related to COVID-19 were identified from relevant databases, of which thirty-nine had an Altmetric Attention Score obtained using the Altmetrics Bookmarklet. Data extracted from the articles include overall attention score and demographics of sharers (e.g., geographic location, professional affiliation).Results:Retracted articles related to COVID-19 were shared tens of thousands of times to an audience of potentially hundreds of millions of readers and followers. Twitter was the largest medium for sharing these articles, and the United States was the country with the most sharers. While general members of the public were the largest proportion of sharers, researchers and professionals were not immune to sharing these articles on social media and on websites, blogs, or news media.Conclusions:These findings have potential implications for better understanding the spread of misleading or false information perpetuated in retracted scholarly publications. They emphasize the importance of quality peer review and research ethics among journals and responsibility among individuals who wish to share research findings.     

Why do electro dancers also dance on YouTube? The media logic of the cultural practices in the electro dance youth style

ABSTRACT

The notion of media logic is one of relevance in the recent debates around mediatization theories. Fundamentally applied to macrolevel, institution-focused analysis, this notion has not often been applied to narrower domains of cultural practice nor used as a conceptual point of departure in this regard. This article puts forward a three-pronged analytical scheme for the discussion of the media logic underlying the cultural production of electro dance, a dance-based, urban youth style born in Paris and spread globally over the past decade under the influence of digital media. Ethnographic attention is paid to a group of electro dancers and their YouTube-based practices to empirically understand how the cultural and social dimensions of the youth group life are crucially shaped by emerging communication forms that respond to a specific (media) logic. The article concludes by suggesting the transferability of the proposed conceptual scheme to better understand other microlevel, group-related mediatized phenomena.     

Self-efficacy,information-processing strategies,and acquisition of health knowledge

Informed by the Cognitive Mediation Model of media learning, this study explores how self-efficacy and information-processing strategies jointly impact the learning of health knowledge. Using survey data (N=1409), the study examines the roles that self-efficacy, motivation of media use, news attention, and elaboration play in acquiring knowledge about swine flu during the 2009 global pandemic crisis. Results support the hypothesized relationships among self-efficacy, motivation, attention to and elaboration of swine flu news, and knowledge about the flu. Implications of the findings to advance the research in mediated cognitive learning are discussed.     

“Roy's Turkish Delight”: Football,Nationalism and the Representation of Turkey in the British Sports Media

ABSTRACT

A large body of literature in representational studies reflects a deep professional concern over the negative effect of the role of the media in representing significant Others. Western media's coverage of an international event, in this case, a football competition, raises some ethical questions about the choice of specific lexical items and textual contents. Drawing on the work of Stuart Hall's representation theory, this article examines how Turkey, a nation located on the semi-periphery of Europe, is represented in Western media outlets. By looking at the role that sections of the British sports press plays in their construction of the Turkish national identity, I evaluate the Euro 2016 and Euro 2004 reporting of the UEFA European Championship qualifying matches between Turkey and England. I apply a combination of lexical and narrative analysis, and I question the way that Turkey is represented in the British sport texts. The style and language used in the presentation of football games reveals that British media outlets are prone to present England's politically and economically powerful position, and its cultural superiority over Turkey. Findings also suggest that the discourse of the “West and the Rest” is alive in the modern world.