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Diversification Strategies Case Study

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Case Title:

NYTimes: Diversifying Online Revenue

Publication Year : 2007

Authors: Supriyo Bose, Kumar Satyaki Ray

Industry: Publishing

Region:US

Case Code: DIS0022K

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
In its effort to diversify the revenue source of the company and neutralise the effect of rising newsprint costs, New York Times Company (NYTimes) acquired Baseline Studio Systems (Baseline), a leading online database and research firm for the film and television industries. The acquisition was also aimed to enhance the content offerings of NYTimes and continue the rich legacy of bringing the latest in the news across diverse sectors.

The case, while providing an overview of the two companies, discusses the strategic shift of the traditional print media to the online media.

Pedagogical Objectives:

  • To analyse the rationale of a merger between a media company and an online research firm
  • To discuss the possible synergies out of the merger
  • To understand the shift of print media to online media
  • To debate whether the deal would be mutually beneficial for both the parties.

Keywords : New York Times Company (NYTimes); Baseline Studio Systems; Database and research firm; Diversification of revenue; On-line media; Entertainment industry; Advertising revenue; Janet L Robinson; Digital space; Hollywood Media Corporation; Diversification Strategies Case Study; Subscription; Newsprint costs

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