Athletic, Axios talking merger?

[Sam Mills 51]

Where did I say don't react on this board? All I said was I've seen a lot of overreactions to this headline. I didn't say the overreactions were all on this board or that people shouldn't post here.

I'm just saying read the article, not just the headline. It doesn't sound like that big of a deal.

I hope you're correct, but pardon me if I don't share your optimism. That last sentence of your post is Famous Last Words in this industry.

 

[matt_garth]

This will not end well.

 

[Vombatus]

AthlAxiotic

The next GameStop?

 

[sgreenwell]

I've seen a lot of overreactions to this headline. Read the article and it's really not that big of a deal. We've seen products be bundled up before, that's nothing new. From a consumer perspective, it just adds value to each subscription. Only downside from a job perspective could be some consolidation of certain functions, which is smart business but sucks for the few people let go.

Can you point out an example where one newspaper or media company bought or merged with another, and five years later, things were better for readers and employees?

 

[ChadFelter]

Entercom-CBS, AT&T-Time Warner, etc., added value for consumers. We're some jobs cut in those mergers? I'm sure, but getting rid of redundancies and trimming the fat is just good business.

If you pay for The Athletic, you'll get access to Axios too. And vice versa. How awful!

 

[The Big Ragu]

You are comparing mergers of large, well established companies that were already public companies. ... to two small VC-funded start ups, at least one of which isn't profitable, that are talking about using a blank check company that would combine the two into one entity, as the way to bring them public.

This is a much different situation.

This isn't a merger in the traditional sense. The Athletic wouldn't have approached Axios for the reasons that Entercom would have approached a direct competitor in CBS Radio to talk merger. The Athletic and Axios are both going to be in need of capital, and the merger would be a way to maximize how much they can bring in. Beyond that, there is a good chance that neither has any interest in disrupting the businesses they were already trying to grow and intend to operate them separately. I can't say that for sure, but the one thing I am sure about is that two relatively small start ups that are tangentially in the same business and are looking to cash in on the SPAC craze in 2021 are not analogous to the kinds of mergers you are talking about from 5 or 6 years ago.

I wouldn't call it "no big deal." How big a deal it is remains to be seen. It could be a very big deal if they manage to go public as a SPAC and the valuation the thing gets is so ridiculous that it ends up putting pressure on them to aggressively cut costs when the bubble they are looking to take advantage of deflates and the owners they will then have to answer to are banging on the door.

 

[ChadFelter]

Just to be clear, I'm not saying it will or won't be a big deal (if it even happens). I can't see the future. I'm just saying that the headline sounds like some big merger while the actual text of the story makes it sound like two distinct organizations under the same umbrella. Sounds more like a bundling than a merger. I'm sure we'll see more and more bundling across all mediums this decade.

 

[LanceyHoward]

Entercom-CBS, AT&T-Time Warner, etc., added value for consumers. We're some jobs cut in those mergers? I'm sure, but getting rid of redundancies and trimming the fat is just good business.

If you pay for The Athletic, you'll get access to Axios too. And vice versa. How awful!

How did either the Entercom-CBS merger or the Time Warner-AT@T merger impact the consumer, either positively of negatively?

Telephone service and filmed entertainment are dissimilar enough that I think the consumer was unaffected. The Entercom radio stations i listened to sounded the same and CBS continued to show the same shows.

 

[ChadFelter]

The Entercom radio stations i listened to sounded the same and CBS continued to show the same shows.

Way more options on Radio.com app post merger

 

[MeanGreenATO]

Poked back in here and I, for one, am shocked Chad is stanning for The Athletic.

Every sports writer wants The Athletic to succeed. A viable business model is good for all of us. But enough folks have been around long enough to know when something doesn't smell right.

 

[ChadFelter]

Poked back in here

Lol, "poked back in here." As if you're not here lurking 24/7 waiting for a chance to humblebrag about having a pro beat or put down anyone who has more Twitter followers than you. Keep on writing columns that get 250 views, old man.

 

[Regan MacNeil]

Gone full heel, huh? It was only a matter of time.