Monday, March 28, 2005

Media companies get ready

The Washington Post has great article called “Media firms piece together new strategies” about media companies. In the article they go through different strategies that media companies are using to adapt present conditions. They shed light on following companies’ plans: Time Warner, Viacom, General Electric, Walt Disney, Sony and Comcast. I found the article from Florida Today some other sources were behind subscription.

Anyhow, the most interesting development from video game industry’s standpoint seems to concern Walt Disney, Viacom and News Corp. News Corp. was old news, but I was positively surprised to read that Viacom is also eyeing a video game company. Walt Disney is on the other hand trying to push their own game development and benefit from outsourcing to China and India.

What this means is that game company market values are going to remain high, because the purchase potential remains high. Media companies are not going after tiny companies but bigger, more established, preferably those game companies, which have their own publishing business. But smaller companies will see their valuations go higher too. Next post is about the reasons why this happens.
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