Why are so many Media Companies going private? Does this mean the public market is missing the value or that the Media Companies can't get IT done with public oversight?
Check it out- Clear Channel, Tribune, Readers Digest and more...just to mention the most recent...
What I see is a group of companies and rights holders taking a media market approach guided by public stock bricks & mortar analysis (P/E ratios, asset/share valuations, etc.), something that forces old media companies that should be aggressive about the new wave of digital advertising and total market shift to a comprehensive digital media approach to stay put and fail with traditional strategies in shrinking markets. They are all getting eaten alive by Google and can't move quickly enough to fight back or figure out how to ride this tsunami.
What to do? Get out, fix things then come back and sell at a huge premium. This is a no-brainer. It is going to happen again and again until the entire digital media industry remakes itself!
And watch for some others to follow suit, old line tech companies now locked into 'value' stock straight jackets- Intel? MSFT? Too big? Don't bet on it...this wave is betting bigger and the private equity guys have the powder!
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