Scripps PhD candidate Nguyen publishes article on media mergers & acquisitions
Though doctoral candidate Huyen Nguyen was unable to attend the AEJMC conference in Montreal, QC in August, she was there in far more than spirit. Colleague Amanda Weed presented a research paper on her behalf titled, "Mergers and Acquisitions Strategy and the Financial Health of Internet Media Firms."
Nguyen’s inquiry centered upon the efficacy of Mergers and Acquisitions (M&A) in Internet media firms, and the ultimate cost-effectiveness of the process.
Her study sought to answer two questions:
1) What are the economic motives behind the M&A strategy?
2) Does M&A strategy lead to the success of Internet content providers?
The project required a great deal of preparation on the part of Ms. Nguyen. To prepare for the paper, I had to take several courses in media economics, financial statement analysis, and regression analysis.
Huyen is grateful for the help she has had in the development of her project.
"My professors are all experts in their fields," she said. "They were willing to walk me through each step of the painful process of developing theoretical frameworks, accessing big datasets, and analyzing the data."
Her findings were threefold in their depiction of the profitable nature of M&A for Internet media firms: that they 1) Empower companies core assets and competencies, 2) they are positively related to profits, and 3) content related revenues increase.
The project contains a rich array of sources that have been developed into a highly original methodology. Her abstract can be found online, in the Media Management and Economics section of the AEJMC website.