Can Diversification Actually Hurt Your M&A Upside?

Revenue and audience diversification are among the most critical operational moves that a media company can make. Not being overly reliant on any one platform or revenue source ensures that the business can thrive even during difficult times.

We’ve seen this play out over the last couple of years. Media companies that had both advertising and events were able to stomach the heavy macro uncertainty that hit digital advertising. Event revenue acted as a strong buoy despite ad revenue pulling back. On the inverse, for media companies that had made pure-play advertising their business model, last year and even the start of this year have been rougher despite benefiting immensely during the pandemic.