Eric Hodge, who heads the Los Angeles office of New York-based The Rhine Group, thinks things are a bit risky in Hollywood right now.
“Bob Iger Said This – What Else Is It Always a Good Idea to Say” He Says — there’s a lot of concern,” Hodge said on Wednesday’s The Grill panel “Behind the Mega Deal in Merger Mania: Media & Entertainment. And it’s just a fact, we (are) a global situation that is unstable. The stock market is down; Media companies are down 40% or more.
However, Hodge — as well as others on the panel moderated by Creative Media President Peter Cathy — said Hollywood is in a period of transition, not a free foley, and that includes mergers and acquisitions.
“You have a company like Netflix, which was leading the charge in a way that now has to transition from a single revenue stream business to a [multiple stream] business,” Hodge said. “And then you have other media companies that are working on their streaming. So there is a lot of change, but I think there is incredible opportunity… you have a moment where the audience is more than the content creators and advertisers. I’m more connected.”
The recent surge in M&A activity saw Hollywood sell AT&T to WarnerMedia in a deal with Discovery; Amazon acquires MGM; and leading talent agency CAA prompted ICM Partners to become a single entity. Panelist Carlos Jimenez, managing director of Moelis & Company Investment Bankers, said he sees some customers hesitant to jump into new M&A deals in light of a struggling economy, as well as Hollywood’s own slowdown in the streaming boom. , as evidenced by the recent loss of Netflix. of customers.
However, like Hodge, Jimenez suggested that now may be the best time to seize the opportunity. He said his company’s job isn’t to sit on the sidelines for six months waiting for an economic turnaround, but to “really figure out where the opportunities are where the disruption is, create an opportunity. So it’s up to those talented managers.” Looking for solid business plans that are delivering capital over this time period versus sit down and see what their partners are doing.
See some of them below:
Hodge and Jimenez were joined on the panel by Andrew Howard, Partner, Shamrock Capital and Emily Wang, Managing Director, Liontree. Wang, who focuses on gaming, said she sees a trend toward larger game developers acquiring smaller companies.
Howard agreed that content is important, adding that his company tends to be aggressive when it comes to premium content across all platforms. “A-plus talent is getting their story out there,” he said.
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