Here is an interesting story on local and how newspapers missed the overall media rally over the last two years.
In this story, Groupon is discussed. And its hyper growth.
Groupon today closed up on the market and now has a market capitalization of more than $15 billion.
To put that in perspective, great companies such as the New York Times have a market cap of about $1 billion. The Washington Post and Gannett each have a market cap of about $ 3 billion. McClatchy is less than $500 million.
EBay, the original local new media business, is now valued at about $43 billion. It is all about local listings, community and payments. And it attacked the classified business model of newspapers.
New media businesses that focus on the big new opportunity where local information and commerce intersect build big value. Traditional businesses that wrote the book on local seem to be shrinking. Growth is rewarded.
Out with the old and in with the new on Wall Street as it pertains to local. I was shocked to see this disparity in value of new media vs. traditional media companies. I will be speaking at an important business conference in Boston in March regarding local business and growth strategies. Click here for more info. Thank you.