On this week’s episode of Variety’s “Strictly Business” podcast, media industry veteran Jon Miller, CEO of Integrated Media, shares his perspective on what it’s like to be part of a Megabucks merger that represents a huge bet on the future. He investigates the dealings and various motives of the biggest names in the media industry.
Mr. Miller, whose resume includes senior business positions at News Corp., Viacom and Time Warner, undermines the strategic rationale behind most media acquisitions in the U.S. that are entering consolidation mode. He sees the current wave of deals starting in 2022, when AT&T spun off WarnerMedia, just four years after the carrier acquired Time Warner.
“That was the opening bell for ‘everyone is open for business,'” Miller observes. “Right now, looking at what Comcast is doing and the recent spin-out of NBCUniversal and NBCUniversal, we’re making every company stand back and say, ‘Do we have the right assets to compete going forward? And if we don’t, what do we do?'”
Listen to the entire podcast:
From Miller’s perspective, there are several different answers. “One is, I want to do similar things, and I think of[Paramount Skydance]and Warner Bros. Discovery as similar companies. They’re essentially in the same business. You can argue some of the differences, but essentially they’re the same content distribution type of business,” he says. “So you’re saying, ‘I’m going to go in a more different direction and either vertically integrate or pursue different capabilities.'” That’s Foxrock, right? It’s about looking at two different areas of the landscape and combining them, rather than the same thing. And that’s a different answer. And I think these are the two fundamental vectors. ”
Mr Miller, who now runs a media investment firm backed by private equity giant TPG, is also commenting on changes in the UK and Europe, as evidenced by the steady flow of M&A by medium to large companies such as Banijay and MediaOne. It’s a response to the impressive market share and stamina employed by the biggest streamers, from YouTube to Netflix to Amazon to Disney+. He believes there is room for regional players, such as the proposed combination of Sky and ITV, but the long-term trend is clear.
“Globalization may not be a popular concept in certain economic or political circles, but globalization is winning, both as a technological issue and as a media issue,” Miller says.
“Strictly Business” is Variety’s weekly podcast featuring conversations with industry leaders about the business of media and entertainment. (Click here to subscribe to our free newsletter.) New episodes are published every Wednesday and available for download on Apple Podcasts, Amazon Music, Spotify, Google Play, SoundCloud, and more.
