Digital media companies like BuzzFeed are realizing what their traditional counterparts came to terms with years ago: scale matters. Now, a few companies are talking about joining forces, according to The New York Times.
Jonah Peretti, CEO of BuzzFeed told The New York Times that he would be interested in merging with a few of the other larger digital media companies like Vox Media, Refinery 29 and Group Nine. Mr. Peretti told The Information earlier this year he was looking for acquisitions.
There has been increasing chatter amongst digital media executives about rolling up a bunch of companies to create an entity that could negotiate for better terms from the likes of Facebook and Google, just like traditional entertainment companies are doing to gain leverage with cable and satellite companies.
However, it may be too late for scale to matter for these companies as advertisers continue to spend the bulk of their digital budgets with Facebook and Google.