Post Will Eat Itself

Heard the news today through Mike Seymour and FXNewswire- Deluxe is buying Ascent Media for a song at $68Mil. (http://www.fxguide.com/qt/3199/deluxe-buys-ascent-media)

gulp

For more than 10 years Ascent pursued a mega-consolidation model, itself eating up smaller companies in the US, UK and other areas, driving down prices and attacking traditional players in every market it went into.

In mature markets where growth is sluggish and competition fierce among larger players, takeovers are rampant as companies attempt to increase market share by acquisition. Studies show that growth for the acquiring company increases temporarily, but also competition reduces as there are less players in a market place- prices go up.

Factor this into an industry that is already compressing and consolidating: this article (http://www.thewrap.com/movies/article/technicolor-closes-north-hollywood-film-print-plant-22645) shows Technicolor shutting down it’s last US printing lab, and moving all printing operations to Canada.

These are signs of an industry trying to reconcile past oversupply, and a market for film services that is contracting rapidly.

It will be very interesting to see how this plays out between an ascendent Efilm, and Ascent’s signature DI and grading company, Company 3, internally within the new, larger Deluxe.. The cultures of the two companies are very different, and have competed for a long time against each other.

 Anyone working at either place care to comment?

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