“A swift path to profitability tends to come from brands that own, rather than rent, their audience. The majority of recent deals have involved highly-focused, subject-specific verticals. New acquisitions are quickly tucked into the margin-sensitive organization’s wider office space, ad-tech stacks and other back-office functions. Overlapping costs are largely stripped out, rather than continuing to operate the assets as separate, adjacent businesses.”— The age of the operator (Digiday)
Feels like digital companies, from SV-based startups to NY-based media brands, are coming ’round to practical business models. We’re finally seeing some sticker shock from “growth at all costs”.